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this post was submitted on 20 Nov 2024
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Government really should be building housing themselves though and working on the zoning laws to make building easier. Even in a free market the government should be a competitor driving prices down to fair levels.
Measures like rent control don't work because landlords are greedy. People end up staying in locations that don't fit them anymore for the rent control, landlords try to chase those tenants away and don't improve the property, new housing stops being developed and supply/demand get wrecked.
Measures like stimulus and tax rebates for first time buyers tends to increase the cost of real estate as well. It's called a demand subsidy and generally isn't a great way to tackle a supply problem. The individual home buyers will be helped at the expense of tax payer money and real estate cost - and the types of homes being bought aren't necessarily the best use of land either depending.
Restricting companies from bulk purchasing and holding real estate seems like a good idea but again when you remove that new housing, especially multi-tenant housing, stops being built. Supply goes down prices shoot up...unless of course the government is willing to personally finance and build out the supply and keep prices fair.
I kinda agree. But I see the government has a role in the zoning and deciding where and what. Like building bridges and roads, define, assign, possible finance and have commercial parties execute in a well regulated environment
It’s governments that are responsible for a lack of housing: local governments through zoning policy. The homeowners in a given city are politically engaged and they vote to protect their own investment in real estate. Call it NIMBYism if you like but homeowners are never going to voluntarily agree to have their house go down in price. Doing so could put their mortgage underwater and result in losing their home and becoming homeless.
Japan does not have this issue to nearly the same extent because they have structured their governments differently. Zoning laws are set by the national government, not the local one, so problems like this can (and have been) set at the national level.
For other countries to solve their housing problem Japan style would require the national government to take power away from the local governments (and in the case of the US, this would put the federal government in a fight with state governments). It would be an extremely messy fight and probably not work out.
Japan has a worse housing problem
Everyone is congregating in hubs