A $1M house would cost someone about $5,800 per month just to pay a 30 year mortgage at current rates without a down payment and that excludes property taxes, i

A $1M house would cost someone about $5,800 per month just to pay a 30 year mortgage at current rates without a down payment and that excludes property taxes, insurance, utilities, repairs, and all the other minor costs that go along with ownership. How can anyone possibly expect to be profitable in the slightest building that housing. Not even luxury housing would be doable at that price. The only return these investors get is from hoping the cost of the property goes up in 10, 20, 30 years, not from the income generated from rent. Companies actually refuse to build in California because what happens when the anti-landlord, anti-profit government decides they don't even deserve enough in rent to stay afloat until they reach those breakeven years 20 years later. The government implements rent control, decides that tenants don't have to pay, decides that tenants can't be evicted if they don't pay, and decides you are the bad guy for being a landlord, or that you are gentrifying the area. There is this assumption some government grant or combination of 5 of them should be the incentive to build there. Why not just allow those properties to actually be profitable an build there - then they would build more housing? Housing built to be affordable housing and those built to be luxury aren't even that different in building costs but you only get incentives if you build the affordable housing. 1000 new units at the top end still increasing overall housing by 1000 units. Instead they incentivize building 1000 units at the bottom end. Why not have the developers actually be the good guys, the hero's that are coming to build housing, sure at their profit but refusing to allow people to become profitable landlords is like saying we don't want more doctors in the world because doctors make too much money. There is an obvious need right now and they sacrifice the entire housing market in order to 'help the poor' but in the end it's a sacrifice. any economist knows that implement pricing controls (like affordable housing) only causes shortages. You have reduced supply because no one wants to build anymore, You have increased demand because everyone wants to pay that lower price. Pricing controls are the biggest disaster in the country and have probably caused more homelessness in their desire to lower prices.