alt Hacker NewsI suppose a big change over the past 50 years is that we really boosted jobs that must be done in big cities. Wanna earn a lot of money? Take on a lot of debt and become a lawyer/accountant/etc. But we didn't create more cities. There's more people competing for the same small amount of commutable real estate, and the winners are the top earners.
I'm not sure how you fix it. The organic fix ought to be that businesses want to move out of the overpriced cities. But if that's also where their employment pool and investors are, that's tricky.
UK has had the same issue. The salary gap between London and anywhere else is huge. So everyone aspiring for a high salary wants to move to London. So prices are drastically higher. And there's no rebalancing in sight.
Maybe there's space for some government regulation? Tax cuts for companies hiring in lower CoL areas? No idea. But so long as an increasing pool of people is competing for a barely growing pool of housing, it's not going to get better.
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Maybe there's space for some government regulation?
The problem is largely due to government regulations that prevent people from building housing.
Larger cities would help more, as the root issues are education and specialization.
A city should be large enough to have multiple potential employers to minimize the risk of getting trapped in a bad job. If you are single, a smaller city can be viable if there is a concentration of businesses in your field. But that won't work for an educated couple, if they are in different fields.
High CoL jurisdictions like having the offices there, they just prefer that the employees and their families be someone else's problem. I couldn't imagine anything short of a federal right to remote work really doing much.
But people naturally want to live near water or other natural features and those areas are usually already developed.
I suppose one could cross-reference all of the places where highway meets water meats geographic feature, but a city does not yet exist - and then propose one.
The root cause of the dynamic you're highlighting here is wealth inequality. The more unequal the distribution of wealth in a society, the more concentrated wealth becomes geographically, because as wealth inequality grows, society begins to reorganize into a system which serves ever more lopsidedly to the needs of the wealth holders. The wealth holders, being few, and being social creatures like the rest of us, tend to congregate in fewer and fewer geographical areas. They have the money, so anyone who wants money must live near them to get some. So rents skyrocket in the geographical areas surrounding the wealth holders, which they ironically benefit from, as it creates a smaller amount of land that they need to buy in order to own all the economically significant land in the country, which only intensifies the cost-of-living crisis. Housing regulation cannot fix this, not only because housing regulators can become captured by the wealthy, but also because the root cause of the phenomenon is not addressable by housing policy.