The main driver of inflation in the housing market is investor driven demand. This can’t be fixed on the supply side, it’s fixed by regulation and enforcement of the investors and RE agents, strengthening consumer protection and insurance, and generally making investment in housing provide moderate ROI, as it used to, for families and live-in owners that expect to hold the property for at least 10 years.
Some relief can be provided on the supply side, but it should be via government housing projects, not by greasing the wheels so that private wealthy investors can build more product to sell. That’s how we got into this mess.
The main driver of inflation in the housing market is investor driven demand. This can’t be fixed on the supply side, it’s fixed by regulation and enforcement of the investors and RE agents, strengthening consumer protection and insurance, and generally making investment in housing provide moderate ROI, as it used to, for families and live-in owners that expect to hold the property for at least 10 years.
Some relief can be provided on the supply side, but it should be via government housing projects, not by greasing the wheels so that private wealthy investors can build more product to sell. That’s how we got into this mess.