As long as people are willing to pay above land cost + government cost (taxes,...) + material cost + labour cost, houses will be built. Land and government cos

As long as people are willing to pay above land cost + government cost (taxes,...) + material cost + labour cost, houses will be built. Land and government costs are well.. decided by the government, some by regulation (where can you build, what can you build there) some by direct taxation. Material + labor costs depend on the labour and material markets directly. Everything else is just excuses not to build more housing, that would bring prices down. Yes, the financial markets and investors may suffer, but that their problem. Sadly, (at least over here in a small EU country) the government is focused on them.... the solution both banks and parts of our government see is based on getting easier credit and not bringing the prices down... but the problem is not in "It's hard for young people to get loans", but that the apartment that was 120k eur 20 years ago is now 450k eur, and that young people don't need a 70k loan anymore but a 350k loan (with a higher deposit).