ABAG’s Phony 9000
Here’s the new normal. It is called hype. Right now, it takes the form of words about an alleged housing crisis. We hear it from "experts" or politicians or corporate lawyers. They speak about “housing needs,” up-zoning single family neighborhoods, and “build build build.”
In the midst of a glut of market rate housing, and hundreds of old housing unit shuttered and empty, to what do these rhetorical expression refer? When these experts use the word "housing," it no longer means "lodging," or "commodity" (as in a rental market). Now, a housing unit exists as an "asset" for distant uncaring real estate financial corporations. Those corporations trade in securities on securities markets, and make their money on an increase in securities prices. When the corporation’s asset value rises, their securities gain in price.
Rented or not, maintained or not, housing now functions as corporate asset. The intermediary form of ownership, between real people and those distant corporations, are the LLC ownerships. They are the purveyor of housing assets to the financial economy. So when a government agency speaks of “9000 units to be built,” forget about that referring to lodging or homes. Think about the capital gains involved.
Today, many housing units are arbitrarily shuttered and vacant. And there are shills crying “housing shortage” in City Council chambers. Today, these shills advocate building more and more market rate housing, to beef up the market rate glut that empty apartments represent (huge apartment buildings stand partially empty because not even the technocrat class can afford the rent). Today, the up-zoning campaigns aim at allowing construction in single family areas. Their hype is that neighborhood racial exclusionism was a result of zoning, and not of bank policy and economic discrimination. They will say anything to enhance building housing. If only it was for the people.
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