I agree that we should relax residential zoning laws but it does feel pretty naive to think the free market alone will solve this. I doubt everyone being adequately housed is even the optimal state of the free market.
The Soviet Union had chronic housing shortages. Multiple families would live squeezed together in one small apartment. The waiting list to get your own took years and years.
It's kind of funny how Chinese communists tried to build enough concrete prefabs not only for people to be housed but also for people who want to invest and it backfired spectacularly.
The investor class is simply insatiable and you can't just satisfy the demand because it's always growing beyond all reason.
You need to curb investors interest in real estate.
Ok, I have an idea, lets stop printing new money directly into the housing market through the federal reserve. Without it, there is no guarentee that a house will appreciate, in fact most homes would be considered depreciating assets. The cost of homes would plung 80, maybe 90%, and housing would be radically more affordable. Id be totally hosed, but I would find that a reasonable compromise.
> Ok, I have an idea, lets stop printing new money directly into the housing market through the federal reserve.
So basically ban buying residential real estate on credit. That's a start.
It would have interesting sideffects. One of them would showing clearly to the masses how unaffordable houses actually already are.
Unfortunately rents would go up in the short term from increased demand from people who'd otherwise get a loan. So the rich people would keep buying them raising the prices till the new equilibrium is reached.
Eventually rents would settle at how much people who rent can pay without starving and house prices would settle at whatever's the price of whatever asset that yields similar returns.
I don't think it would be at 10% of today's prices
