The solution is simple: loosen regulation around building, and let people build more!
When houses become an investment, that's when you start screwing young people! And it stops being an asset if you just simply build more
When houses become an investment, that's when you start screwing young people! And it stops being an asset if you just simply build more
Land prices rise with income. Through all places in all points of history.
The solution is a land value tax.
land value is only a small part of housing costs.
LVT doesn't require any such determination.
Anyway, I'm not opposed to the solution you mention as well. We should subsidize supply of housing, and supply at any price will serve the same purpose of driving prices down, so yes I agree we should build public housing for higher price points.
to be clear, regulations is part of the problem in some markets but not everywhere. how are local regulations causing a housing crisis everywhere? this problem is happening everywhere, and local municipalities across the country didn't coordinate to cause this.
they stopped building after GFC bc it was too risky. market dynamics, the profit incentive, and now the cost for labor + material + borrowing costs is the problem.
this is a better solution: https://www.npr.org/2024/10/07/nx-s1-5119633/housing-crisis-...
> this is a better solution
Let them keep buying. But if we build enough, they won't be able to rent it all out. Are they going to keep buying to control the rent-able supply forever? No, they'll run out of money before we run out of buildable land. (Maybe not before we run out of wood, shingles, and labor though...)
Why not just prevent private companies from buying homes they don't use, and force them to sell the ones they are currently holding?
"Prevent private companies from buying homes they don't use" is going to be a really hard sell legally. (Though, to be fair, changing zoning laws seems also to be a really hard sell...)
Downvote all you want, but math is math.