Housing Policy is Dealing with Three Huge Problems — Pundit

Analysis of the housing market is difficult, so superficial solutions do not work. Perforce, this column has had to go into more technical detail than usual. It concludes, ‘The lesson is that the mainly neoliberal regime for the housing market since the early 1990s does not work: it has under-supplied quality housing, generated unsustainable house price inflation and excluded many “worthy” people from home ownership (and given a rough time to those who depend upon rental accommodation). That should not surprise any properly trained economist; many of the assumptions which underpin the standard market analysis do not apply to the housing market. The nostrums based upon such simple analyses will continue to fail no matter how plausible they sound.’