House market
Residual demand given apartment supply
Demand
Supply
Baseline
Speculative preview: Michael Wiebe’s part 2 isn’t published yet.
This page builds the extension he trailed — “two zones (house- and apartment-zoning), two housing goods
(houses and apartments)” — with our own guesses for the demand system. When the real part 2 lands, we’ll
reconcile this page against it.
Regime
H binding · A binding
same regime as baseline
Total homes
210.0
no change
Apartment share of homes
House price
138.0
no change
Apartment price (per unit)
86.0
no change
House–apartment price gap
52.0
no change
House-parcel value · before LVT
58.0
no change
Apartment-parcel value · before LVT
64.0
no change
Rezoning windfall (next parcel, H→A)
6.0
no change
Landowner receipts · after LVT (total)
7,140
no change
LVT revenue collected (total)
0
no change
Apartment market
Residual demand given house supply · quantities in units
Demand
Supply
Baseline
What happens as you rezone houses → apartments?
x = apartment-zoned parcels, total Q̄ fixed
House price
Apartment price
House-parcel land value
Apartment-parcel land value
The first rezoned parcels capture a large own-parcel windfall; broad rezoning competes it away while lowering prices.
What happens as allowed density rises?
x = homes allowed per apartment parcel, k
House price
Apartment price
Total homes
Where one buyer dollar goes
Per home; houses versus apartment units, current versus pinned baseline