Fixing The Housing Market: Beyond Market-Based Solutions

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Economics News

Social Issues,Housing Market,Affordability Crisis

This article argues that unaffordable housing requires more than just market-based solutions. It highlights the need to address landlord power, rethink public governance, and increase government involvement through price regulation, robust planning, and direct public provision.

Unaffordable housing is a drag on regional and national economies. In areas where housing costs are high, employers end up effectively transferring significant sums to landlords as the cost of attracting talent. 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.

And third, it needs to provide more muscular government involvement in housing, through price regulation, more robust planning, and even direct public provision.of households spend more than 30% of their income on housing. Shelter is a basic human need and unaffordable housing is — and should be — a national scandal.is the Open Markets Institute’s Chief Economist, researching the affect of corporate power on workers, small businesses, and other groups.

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