| If little new housing is built, density remains the same, and transportation is not upgraded, then this applies: https://en.wikipedia.org/wiki/Law_of_rent When it comes to what's squeezing the middle class and imposing a glass ceiling, housing prices are the #1 problem. Student loans and healthcare costs might tie for #2. I think we're getting to the point that we need a "war on housing prices" in the developed world. That's going to mean going to war politically against NIMBYs, property speculators, and others who profit from restricting supply. Here's a few of the major things we need: * Huge (to the level of punitive) taxes on excessive property speculation especially when the speculators are from elsewhere. I was chatting with a friend about it a while back and coined the term "financial pollution" for when foreign capital does socially destructive things to communities like hyper-inflate house prices. In California a start would be to abolish proposition 13 for properties that are not owner-occupied. Housing can't simultaneously be affordable and a good investment. It exists to be lived in, not to act as a financial instrument. * Apply full KYC/AML and other anti-dirty-money regulations to all real estate transactions to chase the money launderers and flight capital away from real estate. This one is rarely brought up but it would go a long way toward limiting runaway property speculation in certain "hot" markets. A lot of this money buying houses sight-unseen is dirty money. * Restrict the power of NIMBYs to limit density by enacting laws at the city, county, or state level. Go as high as necessary. * Greatly expand transit to enable cities to physically expand. This includes light rail, commuter rail, highways, EV infrastructure, etc. A lot of this boils down to fighting NIMBYs since existing property owners have a financial vested interest in opposing all of the above. |