It's more like "relative to historic trends, many people want houses [in desirable areas] who can't afford the current prices."
Building tons of new houses outside of the hot areas that all these people want to live would still elicit cries of a shortage and an affordability crisis. Because there are currently affordable places outside of hot areas, but not very many takers.
It's a really tough nut to crack. Because how do you reorient the demand to those areas that have the supply? It's not easy. We can't seem to do it currently, and there's no real plan to do it if even if we could somehow build even more housing. We'd have to build lots of housing only in hot areas. Which sounds easy enough until you realize the economics don't make sense and even on the off chance that you could, it would only generate more demand.
First order of business however should be to find a clever way to stop abuses like the ones outlined in the article. The housing that would free up in the hot areas would not be near enough to meet the demand, but if we stop that nonsense at least we're not "digging the hole deeper" so to speak.
Uh have you heard of telework? I am sure that both federal and state governments could incentivize companies to offer telework instead of some forced RTO situation.
Maybe or maybe not. What I do know is that they are large in number and a political opponent should realize this and strategize accordingly.
Why? Almost everywhere a majority of people (and certainly the majority of voters) are already invested in housing and do not want their investment to loose value.
> Specifically, both house prices and interest need to go down heavily. Sadly, they used higher interest to try to lower prices, and that didn't really bring prices down.
People are more willing to spend an ever-growing share of their dual-incomes on housing, which drives housing prices modulo interest. So interest has no actual effect on housing affordability, since it doesn't influence how much people are willing to spend. If you lower interest, prices are simply going to rise such that people spend the same % of their income on housing. If you increase interest, prices will (eventually, slowly, since this is a seller-dominated market) fall to match.
> More supply isn't helping much either, as there is no diversity of supply, and builds aren't undercutting the market yet.
New builds will never be cheaper than existing housing stock. Low-cost new housing is a mirage; new housing is premium by construction.
That may “fix” home prices but not the important thing to most, monthly payments.
I was hoping that plumbers, electricians, construction, factory workers still had another 10-20 years before being priced out of the work pool.
I was also hoping we had that much time to use threat of mass protest to keep our politicians aligned.
I genuinely think it's game over for 99% of humanity's interests once the top wealthiest individuals and/or their governments can simply deploy robots en masse.