>>Injecting capital doesn’t magically increase the supply of real estate. It's not magic. It reliably increases supply by raising the return on investment from

>>Injecting capital doesn’t magically increase the supply of real estate. It's not magic. It reliably increases supply by raising the return on investment from building new units, and thus increasing the number of potential projects which find investors. >>Both involve speculators, but only the latter increases the supply. Why shouldn’t policy discourage the former—a market inefficiency, but a very sane local maxima—and encourage the latter? I fully support encouraging the latter and discouraging the former. I would support utilizing a land tax to discourage, and eminent domain to outright prevent, the former.