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Another major point of contention is the economic reality behind housing development. City council members have indicated that the lack of private investment is a "supply-side problem," positing that if the city simply takes control of housing, it can circumvent the constraints posed by the private market. However, critics disagree vehemently.
Recent insights from developers reveal a troubling reality: they would not build in Portland even if given free land and permits, due to the high cost of doing business and an unreliable return on investment. This scenario emphasizes the critical connection between supply and market rents — where constrained supply leads to skyrocketing costs, affecting all residents.