• bionicjoey@lemmy.ca
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    10 months ago

    When building housing, it is often the municipalities that fund the roads, cables, and pipes run to the neighborhood. For this reason, housing developers carry very little risk and have very little incentive to choose a type of housing with long-term economic sustainability. They can pick a development pattern which will cost more to maintain than it will generate in tax revenue for the city and sell it for a massive short-term profit because they only need to care about the housing market, not the infrastructure that supports the housing.