> There are other kind of problems like buy-to-leave (http://www.designingbuildings.co.uk/wiki/Buy_to_leave). In that scenario the amount of housing to build to get to a point that it is affordable is a lot higher than it should be.
Not if you publicly announce your intentions ahead of time. Then people have no incentive to do that because the expectation will be for housing prices to decline and the investment to lose value.
> If you mean state owned properties.
I mean giving subsidies to builders who create new market rate housing. Although another major problem is zoning regulations that prevent new housing from being constructed regardless of financing.
Not if you publicly announce your intentions ahead of time. Then people have no incentive to do that because the expectation will be for housing prices to decline and the investment to lose value.
> If you mean state owned properties.
I mean giving subsidies to builders who create new market rate housing. Although another major problem is zoning regulations that prevent new housing from being constructed regardless of financing.