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Increasing supply won't work with places where the demand is virtually infinite. You have to cut the demand somehow, and in the case of Spain it means preventin
by spaniard89277 2y ago
Increasing supply won't work with places where the demand is virtually infinite. You have to cut the demand somehow, and in the case of Spain it means preventing foreigners to access such stock. That means public housing, or some law that creates a lot of friction.
Cheaper housing in Spain will lead to induced demand, because there's just too many people willing to move here.
- misja111 2y agoYes you're right, reducing demand will also work. Which is exactly what capping rents won't do, this will actually increase demand ..