In a market with a population growing faster than the supply of housing it is possible for there to be no place where values fall, and in fact for people who can no longer afford an improved neighborhood to end up homeless as a result.
This is why housing supply is absolutely critical, and as a society we should be working hard to ensure we always have supply in level with (or erring toward slightly exceeding) demand.
However, we have a cultural myth that the home is a persons primary investment and wealth accumulation vehicle. That Mrs. very harmful because it creates enormous incentives to do the opposite: restrict supply as a way to ensure that the people who already have a home are guaranteed a good return on their “investment.”
It’s true that home is a very large asset and that appreciation can benefit the individuals who live there, there’s nothing wrong with that at the individual level. However when we choose to have house appreciation as a significant goal at the societal level, it directly competes with the desire to end homelessness and see everyone housed.
If ensuring that everyone could afford at least adequate shelter was a primary goal for society, we would need to make choices that sometimes worked against, or at least did not help, home appreciation.
In a market with a population growing faster than the supply of housing it is possible for there to be no place where values fall, and in fact for people who can no longer afford an improved neighborhood to end up homeless as a result.
This is why housing supply is absolutely critical, and as a society we should be working hard to ensure we always have supply in level with (or erring toward slightly exceeding) demand.
However, we have a cultural myth that the home is a persons primary investment and wealth accumulation vehicle. That Mrs. very harmful because it creates enormous incentives to do the opposite: restrict supply as a way to ensure that the people who already have a home are guaranteed a good return on their “investment.”
It’s true that home is a very large asset and that appreciation can benefit the individuals who live there, there’s nothing wrong with that at the individual level. However when we choose to have house appreciation as a significant goal at the societal level, it directly competes with the desire to end homelessness and see everyone housed.
If ensuring that everyone could afford at least adequate shelter was a primary goal for society, we would need to make choices that sometimes worked against, or at least did not help, home appreciation.