July 29, 2006

Responses to the letter

The SunHerald printed my letter on the 22nd. The only change they made was to the title...they used Price gouging? Or basic supply and demand?

Only two responses thus far, both via E-mail.

Here's one:

Just a note on economics: As you correctly point out, the supply and demand
balance of Coast housing has changed, but that doesn't imply that raising
rents isn't "gouging." The lack of housing simply allows rising rents; it doesn't
require it.

An interesting thought on the rent raising, though I still think if you have a short supply and high demand, that's going to bump the price up in order to ensure a supply. Basic market forces there.

Here's the other E-mail reply:

Excellent letter... Thank God there are people like you who understand
basic supply and demand. It is going to be tough here for quite a
while... Things will get better, but rent may not ever go back down to
pre-Katrina levels.

I have faith that if we can get our housing unit levels back up to what they were (if not higher) pre-Katrina, that rents will eventually go back down.

Note I said "if". Because it will take the residents convincing their planning
commissions and city councils/county boards of supervisors that housing developments that encompass all income levels (and not just high-end condos or 5+ acre lots in the country) are what's needed around here.

And, of course, that will take some doing...

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