Comment on “Multifamily Housing Demand”

Gary Reid and Robert Schafer

Real Estate Economics, 1979, vol. 7, issue 1, 123-129

Abstract: “Multifamily Housing Demand” is probably correct in concluding that public policies to expand the capacity of the private sector to build multifamily housing are not necessary. There are, however, two important flaws in this article. First, the claim that a basic cost issue exists in multifamily housing is not supported by the evidence. Second, the focus of the policy analysis on the supply side of the housing market is misdirected if the real issue is, in fact, income distribution. Under such circumstances, policy prescriptions ought to concentrate on the demand side.

Date: 1979
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