The problem is that people don't want to live in high densities, especially when there are planner-induced parking shortages. A state regulation requires Portland to reduce its parking by 10 percent, so new developments are often built with limited parking. Since developers won't build what they can't sell, planners have to subsidize them to get them to build high-density developments.

This development next to a light-rail station in Beaverton received $10 million in subsidies, yet went broke before it was finished. Since it was to have limited parking, it is doubtful that it could have made any money even with the subsidies.

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