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This seems to assume that induced demand is a significant factor in housing ownership. Which could be true! Maybe we also need to look at housing speculation. I
by TaylorAlexander 2y ago
This seems to assume that induced demand is a significant factor in housing ownership. Which could be true! Maybe we also need to look at housing speculation. If we build more homes and they’re all bought by housing speculators, the median persons home ownership won’t change.
- wyre 2y agoInduced demand and housing isn’t talked about enough when discussing housing prices. I’m not going to crunch the numbers, but I could see it working out for speculators with nearly infinite funds to buy up whatever new housing supply as a means to artificially keep supply low to keep their stock of real estate overvalued.
- jltsiren 2y agoPeople talk about induced demand for housing often enough. It's not as big obstacle as induced demand for car traffic in large metropolitan areas. It simply means that you can't solve housing issues locally. You have to deal with them at a large enough scale. Speculators hoarding the housing supply sounds like a market failure. If you believe in capitalism, the market will deal with the issue. Non-speculators will show up and build new housing, if you let them. If you don't believe in capitalism, there is always government intervention. The government could, for example, build public housing for 100 million or 200 million people, prioritizing areas with least affordable housing.
- TaylorAlexander 2y agoFor more information on government options I always go back to this link: https://www.shareable.net/public-housing-works-lessons-from-vienna-and-singapore/ https://www.shareable.net/public-housing-works-lessons-from-...