[B56b]

The increase in supply he advocates for is a viable solution because it is sensitive to different things.

Small, local development gets built and becomes profitable based on demand of the local housing market, but almost all housing today is built by large developers. These large developers are responding to the demand not for housing, but for the mortgage itself. Thanks to nationalized mortgage securitization the buyers the market cares about are those buying these securities: banks, pension funds, insurance companies, etc. When prices fall these securities become less attractive financial products, which decreases the demand for large development.

Chuck advocates for local building, which can ignore this macro-level demand and instead respond to the actual local demand for shelter.