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You can also reduce housing demand by making it less attractive as an investment or store of value (basically decreasing demand). There are lots of approaches
by myrmidon 1y ago
You can also reduce housing demand by making it less attractive as an investment or store of value (basically decreasing demand).
There are lots of approaches that go that route, like decreasing wealth inequality or suitable taxation.
- mothballed 1y agoEliminating AML controls would probably help. Real estate is a haven asset to exchange value away from the grips of a tightly controlled and monitored banking system, although this is something normally transparent to the middle class.
- Workaccount2 1y agoCorrect, you do that by building more housing, which naturally makes investments in property less appealing. There is no other approach. You can follow these paths of taxing, regulating, minimum waging, but none of them create more houses and all of them just push the same air around the inflated balloon.
- cloverich 1y agoBut taxing investment homes does, because it incentivizes the divestment of houses. Investment homes account for 20%+ of the market. Whether this adds pressure to rental market depends on how many SFH renters convert to buyers - we certainly would be buying at modestly lower prices.