>>Perhaps the largest reason is the financialisation of housing as an asset class by hedge and other vulture funds.
Financialization of housing has had no negative impact on housing affordability in regions of the US, mostly in the South, that allow housing supply to grow, instead of constricting it with zoning restrictions. On the contrary, basic economic theory would dictate that more advanced financial markets that facilitate greater volumes of investment into housing would be good for housing affordability, by expanding housing supply, and by doing so, increase the number of units available for rent relative to people looking to rent.
Consider which city has the highest rental rates in the world: San Francisco. It has the most stringent restrictions on housing development, and housing use by owners, of any city in North America.
Inhibiting the market is what creates shortages, and housing is no exception.
We want housing to be commodified, and mass-produced by collections of profit-motivated individuals. Consider: construction has kept rent in Chongqing, China to $75 a month.
Financialization of housing has had no negative impact on housing affordability in regions of the US, mostly in the South, that allow housing supply to grow, instead of constricting it with zoning restrictions. On the contrary, basic economic theory would dictate that more advanced financial markets that facilitate greater volumes of investment into housing would be good for housing affordability, by expanding housing supply, and by doing so, increase the number of units available for rent relative to people looking to rent.
Consider which city has the highest rental rates in the world: San Francisco. It has the most stringent restrictions on housing development, and housing use by owners, of any city in North America.
Inhibiting the market is what creates shortages, and housing is no exception.
We want housing to be commodified, and mass-produced by collections of profit-motivated individuals. Consider: construction has kept rent in Chongqing, China to $75 a month.
https://www.nytimes.com/2019/04/11/world/asia/chongqing-chin...