Debate Continued: Supply vs Demand

Jim Russell is again taking to the pulpit to dissent from the popular view that supply problems are causing housing affordability crises in cities like New York and San Francisco.

1 minute read

August 14, 2014, 6:00 AM PDT

By James Brasuell @CasualBrasuell


Russell has written two recent articles that examine the question of whether the rents are "too damn high" due to limited supply or strong demand. 

The first article parlays a Tennessee Williams quote, "America has only three cities: New York, San Francisco, and New Orleans. Everywhere else is Cleveland," into a dissenting take on recent claims made by Ed Glaeser that historical trends of highly regulated cities have made high real estate prices a sign of limited supply. Here's what Russell says about that: "Glaeser is wrong. Sure, constraints on housing supply push up rents and home values. But the dominant story for the market in global cities such as San Francisco and New York is the quality of demand. Choke the unique demand and the drag on supply ceases to matter."

The second article states that "Supply only matters where demand is strong." Another strong statement that will surely surprise ardent supporters of development: "The squawking about greater density and housing supply allows more white people to follow other white people into the city, thereby exacerbating racial segregation. YIMBYism comes across as a sinister form of urban colonization. Build us housing where we want to live."

While the debate persists, so do the effects of the much-discussed issues: expensive parts of the country are deeply embedding in structures of inequality, and sprawl continues, unabashed by the recent recession.

Tuesday, August 12, 2014 in Pacific Standard

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

High-rise apartment buildings in Waikiki, Hawaii with steep green mountains in background.

Study: Maui’s Plan to Convert Vacation Rentals to Long-Term Housing Could Cause Nearly $1 Billion Economic Loss

The plan would reduce visitor accommodation by 25% resulting in 1,900 jobs lost.

April 6, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 10, 2025 - Diana Ionescu

A line of white wind turbines surrounded by wheat and soybean fields with a cloudy blue sky in the background.

Wind Energy on the Rise Despite Federal Policy Reversal

The Trump administration is revoking federal support for renewable energy, but demand for new projects continues unabated.

April 15 - Fast Company

Red and white Caltrain train.

Passengers Flock to Caltrain After Electrification

The new electric trains are running faster and more reliably, leading to strong ridership growth on the Bay Area rail system.

April 15 - Office of Governor Gavin Newsom

View up at brick Catholic church towers and modern high-rise buildings.

Texas Churches Rally Behind ‘Yes in God’s Back Yard’ Legislation

Religious leaders want the state to reduce zoning regulations to streamline leasing church-owned land to housing developers.

April 15 - NBC Dallas