this post was submitted on 12 Mar 2024
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No, there's a very easy solution: the government should build housing the same way they build roads and bridges.
Housing is societal infrastructure. Leaving that entirely to the private sector never made any damn sense.
Simple and easy are two different words. "Start doing something you used to do almost half a century ago and wait 5 to 10 years, and multiple potential changes of government, for tangible results," is pretty simple, but I wouldn't say it's easy. I'm also certain none of the pundits will say, "Look at all the money they spent, and we still have a housing crisis," followed by, "Sure we fixed one housing crisis, but look at all the people who lost money on the purchase of their homes!"
All excellent points, and you're right, I really meant "simple", not "easy".
My comment was really intended to highlight the narrowing of the solution space regarding housing. When houses became products and investments, we collectively decided the government had no place in building them aside from indirect nudges: zoning, various forms of incentives, etc.
Maybe it's time we accept that the free market has simply failed and we need to look beyond neoliberal orthodoxy for solutions.
That's not an easy shift! Not at all. But IMO it's a necessary one.
As an aside, it's not like this is new. "It's a Wonderful Life" highlighted this exact problem. Their only mistake is they assumed a benevolent capitalist (George) would come along and fix the problem. But that ain't how the real world works.