The Market Alone Can’t Fix the U.S. Housing Crisis

Unaffordable housing is a major drag on the economy. Here’s what governments — and businesses — can do to meaningfully improve the situation.

But what will it take to fix this problem? Will market-based solutions suffice? If not, what kinds of interventions are necessary? Recent research shows that the market itself needs to be fixed. Any plan to overhaul the housing market needs to, first, confront the power of landlords to raise rents. Second, it requires rethinking public governance of housing markets behind simplistic prescriptions to just free the housing market from government regulation, assuming lower rents will follow.

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