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Culture War Roundup for the week of February 6, 2023

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So your homeless shelter doesn't get built near your neighbourhood, or anywhere else in your city. Now what? You've addressed the point that such shelters will impose externalities on those living near them, but shelters themselves are not the cause, the homeless people are. And the lack of shelters will not actually remove those homeless people.

Perhaps they simply congregate in your city centre, making it increasingly unpleasant to be in as happened in many major American cities. Maybe they just start congregating in a random place, pitching their tents in some neighbourhood for no apparent reason - and perhaps they pick your neighbourhood, and you've got the problem anyway. What's the solution to this?

Obviously, with the homeless there are non-housing related options: you could try and simply ship them away to some other area, or have the police be much harsher on vagrancy and imprison many of them. In the first case, what's to stop these other areas from sending them back, or the homeless themselves from simply returning? Will you end up in an expensive cycle of carting the homeless back and forth? For the second, what about prison capacity? I can't imagine prison construction is any more popular than shelter construction, so where do you plan to build the extra prisons needed for the homeless population?

Admittedly, this example only applies to homeless shelters, and there are other examples like loud or foul smelling factories which might be better.

Let's turn to the housing question instead. As many of the other replies have noted, there is nothing wrong with wanting a nice neighbourhood, filled with familiar people. A lot of poor people are just unpleasant to be around and bring issues with them, and high housing prices do act as a barrier. But I think nimbys making this argument are not being logical or following the idea through to its conclusion.

I assume you're a homeowner in Madison, right? Maybe your house is worth $1 million or something. But I'm also going to assume that this is not a particularly large or impressive house, given the pressures on housing costs you mentioned? If we remove those restrictions and start heavily increasing density in the area, then perhaps your area will become less pleasant, with more bad people around.

Except: you'll still have the capacity to afford $1 million in housing. That's not going to vanish just because there are more houses in the area. Even in the yimby paradise of Japan, they succeeded in keeping property prices at the same level for ~20 years, not actually in lowering them - and if there was some unprecedented success in lowering housing costs, this would almost certainly take many years to accomplish, given existing homeowners time to realize value.

So now, instead of living in your $1 million 3 bed suburban house surrounded by other $1m suburban houses, you move to a $1 million 6 bed McMansion, surrounded by other McMansions. Your ability to spend money to preserve a certain living situation has not changed. What that money can buy has improved.

There is an argument that this only applies up to a limit: if you're already wealthy and can afford a 20 room mansion, there's no real room to move up. But putting aside the fact that this is a tiny niche of the population, if you have that kind of money there is already a solution: just buy land. Give yourself a couple of acres around your house. Don't want an apartment complex to block your view? Buy the land there, pay an appropriate fee to cover the loss to society.

Neighborhoods aren't fungible

Do you actually believe this? Do people really consider that "ABC Street", with its rows of one story suburban houses 10 minutes from nearby amenities is somehow different from "XYZ Street" with its rows of one story suburban houses 10 minutes from nearby amenities?

After all, if there is one constant in the property market, it is that people are constantly on the lookout for bigger, better housing. Do people's revealed preferences suggest that a large number of people really think that their neighbourhood is the only one that is nice and with good people?

I will accept there are a handful of places that you really can't replicate: a New York brownstone, a London Georgian terrace. But these places are already incredibly expensive and desirable. No amount of new building will make these areas any less desirable and expensive.

And if you want to talk aesthetics in particular, in some cases it is the nimby restrictions which cause the shortage of these types of housing! I can't talk for the US, but here in the UK the rise of the generic tower block and hideous "Deanobox" is overwhelmingly driven by property regulations.