| Japan does real estate development with banks and loans like the US does, and interest rates are even lower so it's easier to borrow a large sum of money. Can you explain what you meant about the finance industry not allowing prices to appreciate? Their zoning is where they have obvious huge differences. The zoning categories are set at a national level and limit how restrictive local cities can be (there's 12 categories based on nuisance level). The higher zoning usually allows lower density also, so cities just start with a little extra zoning headroom that allows them to grow over time. They also automatically permit things that follow zoning. [1] In the US zoning is more local, often there are many more zone types that are much more restrictive about what they allow (it's more micromanaged and often prohibits things like mixed-use in addition to multi family). In many of the biggest markets even projects that follow zoning are usually not allowed, every project is an individual years long fight. Also in cities like Los Angeles the zoned-for capacity has actually dramatically decreased over time, even as the population grew. [2] Some of these policies may be a legacy of people deliberately not wanting it to be too affordable, because neighborhoods didn't want low-income people to move in. Of course now in many places even middle-income people can't afford it. I think, from a social justice perspective, the US policy has been an abject failure. It's increased pollution (from long commutes) and homelessness. It's deprived people of good paying jobs, since they can't afford to move to the locations where they're available. It's squeezed the middle class and enriched landlords, there's even debate that housing may be the most important contributor to wealth inequality. It's anti-environment since higher density has less environmental impact on a per-capita basis. I'm sure there's some upsides, but I can't see any that remotely justify the long-term costs that these policies have brought about. [1] https://marketurbanism.com/2019/03/19/why-is-japanese-zoning... [2] https://www.salon.com/test/2015/04/05/the_incredible_shrinki..., graph at: https://www.austincontrarian.com/.a/6a00d8341d04dc53ef01b8d2... |