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Supply and demand still works. That is a confounding factor artificially increasing demand (or decreasing supply). There are lots of approaches to fight this, i
by goodcanadian 6y ago
Supply and demand still works. That is a confounding factor artificially increasing demand (or decreasing supply). There are lots of approaches to fight this, including banning foreign ownership, or just building so much housing that it doesn't matter (the foreign ownership problem may also go away in the latter case if it turns into a poor investment).
- Jochim 6y agoBuilding housing isn't enough. People need to be able to get to work in a reasonable length of time, they generally need to be able to maintain prior relationships, have access to hobbies, shopping etc. that all tend to be further away from undeveloped land. That's also ignoring the problem of landlords using the excess capital extracted from rents to drive the price of housing further from the reach of the people actually interested in using it as a house. The higher prices are then used by landlords as a justification for raising rent, and this cycle then repeats.