At last, someone from the world of politics is being honest about a pervasive and harmful trade-off. When home prices rise faster than earnings, owners like me gain wealth, while non-owners lose because their incomes fall further behind housing costs.
Honesty is saying that home prices have to fall. But this is progress.
The Generation Squeeze folks have recommendations.
Regardless of whether these are built as rentals or for sale, the catch-up to fulfill demand will take decades, and no property developer will do them if they aren’t profitable.
So don’t expect property values to seriously decline. Frankly, what we all need are wages to catch up to the cost of living.
If wages increase but housing demand remains significantly higher than supply, housing prices will just inflate. We need to build a lot more homes.
We definitely do, but people seem to think that’s a speedy election-cycle process.