The Berkeley co-housing experiment, where a community offers up money to build a complex & buy their homes, gave up and couldn't finance affordable units due to costs. Showing that developers pay for inclusionary units by raising rents on other units berkeleyside.org/2023/04/24/wit…
They can't do that because they're buying their homes so they can't raise the cost of it even higher. Co-housing is a European thing that cuts out the developer and its profit-motive, but with Bay Area construction costs so high, it doesn't work to provide cheaper homeownership.
@IDoTheThinking Developers don't set prices. The market does. When market rents aren't high enough to cover costs—from inclusionary units, union labor or otherwise—development doesn't happen. That's most of the Bay Area at the moment.
@IDoTheThinking Inclusionary units = My cheap rent is made possible by other renters.
@IDoTheThinking yeah but they thought long and hard about it
@IDoTheThinking Getting rid of iz and other cross subsidies imposed on new market rate units would lower median rents a lot. As we know median rent is the main factor in homelessness
@IDoTheThinking The thing is, in Germany, baugruppen have an entire regulatory and finance infrastructure set up for them + building permits are by-right there and urban planning is regulated at the federal level.