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by piokoch 2023 days ago
"it should drag -with some delays- the construction industry into building more housing units at a faster pace".

But how? How can you build more apartments in Lisbon or Amsterdam, where every inch is already used? Houses can be build in more distant areas but this forces people to commute longer making their live much worst.

1 comments

The demand gets higher, therefore a healthy market will move towards a supply/demand equilibrium.

There are creative ways to go around most problems, given the incentives are strong enough. i.e. we all live underground /s

On the other side, too much regulation can prove to be a strong disincentive. In this case I expect architecture or density requirements, amongst other things, in cities like Amsterdam to cool down the market, maybe a bit too much.