knb comments on Open thread, Jan. 25 - Jan. 31, 2016 - Less Wrong Discussion
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If I look in Google Maps at California there seem to be huge open spaces. What's stopping new cities in California to be build on land that's outside of the existing cities?
A lot of Californians like those big open spaces. Others don't want developments that make it easier for poor people to live around them (due to fear of crime, "bad schools" or other unpleasantness.)
San Francisco is now one of the most expensive real estate markets in the world, and the populace wants to keep it that way.
Alright so how do we keep these people away then while lowering prices?
You can implement Hukou system. Obviously, it would lead to other problems.
You wouldn't even need the hukou; private covenants would be quite enough. However, these conevants are banned as an infringement of civil rights. But the real solution is to decouple education from local real-estate markets, by allowing people to freely choose their preferred schools (public, charter or private, via student-linked vouchers) regardless of their home address or VAT code.
I am a bit doubtful that free school choice will solve the "in some places real estate is really expensive" problem.
For example, NYC has a notoriously bad public school system and very expensive real estate.
The problem is not expensive real estate persay; it's supply restrictions that make real estate more expensive than necessary. Free school choice would remove much of the motive for these restrictions.
E.g. in New York City..?
I don't think school is the only or even the main reason for supply restrictions. People like to live with neighbours of approximately the same social standing and will actively oppose hoi polloi moving in, even without schools being involved.
Even people with no children buy property in good locations because that's where the jobs are. If remote work became more popular it would make living in a big city no longer a necessity.