4 ms·
It is a mistake to blame the high cost of housing on market forces. It is largely the product of local housing policy. It is a choice.
by Seattle3503 3y ago
It is a mistake to blame the high cost of housing on market forces. It is largely the product of local housing policy. It is a choice.
- janalsncm 3y agoI think it’s both. Housing policy can help or hurt but overall many places in the world have stuggled to keep housing prices affordable.
- smallmancontrov 3y ago> stuggled to keep housing prices affordable. The political system does not strive for affordability, it strives to make housing a good investment. Unaffordability is just the inevitable consequence.
- astrange 3y agoExpensive housing is almost entirely an Anglo nation problem. If you don't restrict infill development you won't have this issue.
- janalsncm 3y agoHousing is extremely expensive in China as well. It’s one of the main barriers to Chinese yuppies having the three kids their government wants them to.
- astrange 3y agoIsn't China having a real estate overproduction crisis right now? There can be different problems in different places, I mean, it's a big country, but that's mostly the opposite problem. The hukou system also can't help - you can stop immigration to an expensive city but presumably you also stop emigration to a cheaper one.
- janalsncm 3y agoChina has overproduction in undesirable places. Desirable places are still expensive.
- julienb_sea 3y agoLocal housing policy only sets housing costs explicitly if they override market forces e.g. via rent control. There are plenty of examples of how the market responds to this type of intervention, by not building more supply, letting existing supply fall into disrepair and constricting uncontrolled supply, resulting in much higher market rate. In general, housing policy affects supply, and market forces decide the prices. Notably increasing supply doesn't always lower prices as demand is elastic.
- lazyasciiart 3y agoThey override market forces explicitly with zoning rules that forbid building more housing. The ability to produce more supply in response to demand is the market at work. That’s why everyone who complains that rent control distorts the market can be ignored unless they are also complaining about zoning, building codes and permit processes.
- spxneo 3y agoI think you meant inelastic demand. Housing would fall under that category where supply does not impact price, which is my point.
- Auracle 3y agoHome prices in Canada and US have been climbing at insane rates pretty much everywhere, including rural areas. People in cities tend to ignore market force because they’re only focused on their city.