There’s no such thing as affordable housing
There are two very simple policy strategies for ensuring housing is affordable:<p>(1) make it easier to build high density housing<p>(2) make housing an unattractive financial asset<p>Many have already talked about (1) but few understand (2) and what types of policies would promote it. This would include<p>- heavily taxing capital gains owning land (not taxing the improvements)<p>- limiting ownership to a very long lease (e.g. 99 yrs) similar to what they do in Singapore.<p>Both would be highly politically unpopular for the majority of Americans and therefore they do not get implemented. What people don&#x27;t realize is that fixing the housing problem actually requires certain people to GIVE UP something:<p>- giving up the quality of your nice neighbourhood because a giant complex was built next door<p>- giving up much of the capital appreciation in your house because it appreciated<p>Both would be be highly unpopular for the majority of existing home owners. As a result everyone complains but politicians don&#x27;t actually do anything and nothing changes. There is no such thing as additional affordable housing without any cost. There is a price to be paid. Most are not willing to pay it.