4 ms·
I believe that this can be solved least for housing. If you construct a housing cooperative that has the following properties the entity should be incentivized
by niemandhier 2y ago
I believe that this can be solved least for housing.
If you construct a housing cooperative that has the following properties the entity should be incentivized to maximize the number of housing units:
1. Each tenant must own shares of the coop.
2. Shares per member are capped.
3. Profit must be reinvested
4. New shares can only be issued for new units build.
Rather than subsidizing rent, the government can subsidize the building of new housing, the corresponding shares can be handed over to new tenants.
Since tenants are shareholders, the system stabilizes at a point where rent and living conditions are acceptable.
In Germany this type of construction is called a “Wohnungsgenossenschaft”, and receives some tax incentives.
Currently about 3 Million people are living in flats provided like this.
It’s probably one of the only working pieces of socialism.
- throwaway2037 2y agoHat tip: Wiki/English: https://en.wikipedia.org/wiki/Housing_cooperative#Germany https://en.wikipedia.org/wiki/Housing_cooperative#Germany New York City also has co-ops but for very different reasons: To screen potential owners.