you think the developers will continue building if nobody gives them money at the end of the build? either through pre- (“give us money and we’ll build you a thing”) or post- (“come give us money for this thing we built”)
why do bakers even charge for the bread they made?!! its just sitting on the shelf doing nothing?!
Exactly, many people rent because they’re credit constrained - they can’t borrow the lump sum even though they have enough to pay the rent each month.
Banks are shit at supplying houses because they like to protect the (over)value(d) assets of their balance sheet - plus they ration credit inefficiently. (source some papers by joe stiglitz et al).
Council housing / social housing / rent controlled is the thing to fill the gap, the government can borrow againts its much more secure asset and pay the construction workers. Govt should not care about crashing a house price bubble; in fact it should want to - oh hang on . . . govts are controlled by landowners too.
Definately land (ownership) reform needed hopefully to democratise governments at least a wee bit more representative.
you think the developers will continue building if nobody gives them money at the end of the build? either through pre- (“give us money and we’ll build you a thing”) or post- (“come give us money for this thing we built”)
why do bakers even charge for the bread they made?!! its just sitting on the shelf doing nothing?!
I think it’s mostly regular homebuyers that give them the money (well, the bank, through mortgages).
Exactly, many people rent because they’re credit constrained - they can’t borrow the lump sum even though they have enough to pay the rent each month.
Banks are shit at supplying houses because they like to protect the (over)value(d) assets of their balance sheet - plus they ration credit inefficiently. (source some papers by joe stiglitz et al).
Council housing / social housing / rent controlled is the thing to fill the gap, the government can borrow againts its much more secure asset and pay the construction workers. Govt should not care about crashing a house price bubble; in fact it should want to - oh hang on . . . govts are controlled by landowners too.
Definately land (ownership) reform needed hopefully to democratise governments at least a wee bit more representative.