Should the government solve the housing crisis by building large numbers of affordable homes to force the market downward? Perhaps $200,000 homes in an area of 500k homes.
Last Updated: 25.06.2025 04:07
It has the whiff of the right solution: if you want homes to be more affordable, you need more homes.
But now ask yourself a far more basic question:
People want affordable housing. People want to build affordable housing. Yet, it's not happening.
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If the government could build homes for $200,000 (which I think you'd have to be rather naïve to think it could build what you think a $200,000 home is)…
why are people not already building $200,000 homes like crazy?
What would stop a developer from buying up 10 acres, and constructing 80–160 housing units there?
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And not just a single buyer.
Answer that, and you'll have a much better idea what the root of the “housing crisis” is.