> I disagree that the government should do anything about it though. What's the alternative, make them homeless? If there is both supply and demand, let people

> I disagree that the government should do anything about it though. What's the alternative, make them homeless? If there is both supply and demand, let people do what they want Does letting people do what they want include building without permits (esp. on allotments not designated for housing)? It doesn't work this way, governments already exercise strong control over the housing market due to laws and regulations. I don't live in HK, but where I live, the large property funds (whose demand has nothing to do with housing) have a dramatic effect on prices - they cause an artificial shortage by purchasing everything on the market, thereby increasing the value of their own portfolio (and their rents). So just "letting people do what they want" isn't going to help the housing situation, it just increases the GDP. The government should use the increased taxes (if any - too many loopholes) to compensate the negative effects.