I agree that today this isn’t too much of an issue because there are so few units. But there are proposals to build far more affordability-restricted housing, and I no longer think that’s such a good idea.
Some of what I describe above, however, is an issue today. Consider the “Buy land, take advantage of density bonuses, build a large 100% affordable fancy building, and sell the units to your just-out-of-school currently-low-earning children” case.
I’d expect that too many people apply for most units for it to be worth that much effort to game. A quick search indicates that 40-500 people might apply for a unit. If it takes someone several years to successfully apply after they are eligible, that doubles the lost earnings. They also can’t resell the unit for several decades, so they are locked in for a long time. The option value of moving in the next 40 years seems significant. https://www.wbur.org/radioboston/2019/02/20/inclusionary-development-housing-affordable https://www.bostonglobe.com/lifestyle/style/2014/12/15/boston-housing-lottery-offers-luxury-low-cost/aAPOGUm4FwbvHExq27mDUM/story.html
I agree that today this isn’t too much of an issue because there are so few units. But there are proposals to build far more affordability-restricted housing, and I no longer think that’s such a good idea.
Some of what I describe above, however, is an issue today. Consider the “Buy land, take advantage of density bonuses, build a large 100% affordable fancy building, and sell the units to your just-out-of-school currently-low-earning children” case.