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Politics : Formerly About Advanced Micro Devices
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To: Tenchusatsu who wrote (454561)2/6/2009 1:09:39 PM
From: tejek  Read Replies (3) of 1576178
 
Ted, just because some developer builds a house doesn't mean it's going to be populated from day one. Especially in today's real estate slowdown, where Obama has to pass a $15K tax credit to homebuyers, developers just can't "create" the demand.

Suburbanization has happened over the last 5 decades since WW II. It didn't just start. Developing land along freeway rights of way made many developers rich. You've heard of Levittown, haven't you?

By limiting the amount of development in a community, both highways and houses, you are artificially creating a supply and demand imbalance. The fact that houses get bought out and highways are at capacity from day one points to an existing imbalance, not some magic ability for developers to create demand.

What it means is that freeways are a lousy way to deal with mass transit; that you can never build a freeway big enough. And freeways have little to do with any imbalances that exist in the housing sector. That's more a factor of market supply and demand.
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