The Law of Supply and Demand
A friend and I were talking about Cambridge’s housing problem. Like me, he’s a proponent of increasing affordable housing. But as our conversation went on, he became increasingly frustrated with my comments about the impacts of density and growth. Finally, he blurted out, “haven’t you ever heard of the law of supply and demand?” “I hate to tell you this,” I replied , “but any marketing professional will tell you that in reality, there’s no LAW of supply and demand.” There’s been a lot written about Cambridge’s housing problems. Our stock of affordable units is being turned into expensive upscale housing at an alarming rate. Rents are spiraling upwards, and there is apparently no limit to how many units can be gobbled up by new 6-figure wage earners. Realtors and developers are ecstatic. It’s like a gold rush; any realtor who can get a seller to sign with them is guaranteed a minimum of $30,000-50,000 per home sale. Competent realtors are making $500K per year and more .