Quote:
Originally Posted by Sheba
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Resolving the housing crisis, or even alleviating it, would imply more housing that is rental and not owned, as ownership is prohibitively expensive for most people.
That said, current rents being as extortionis in nature as they are, I cannot understand why rent increases have not been limited or indexed to match the inflation rate at a given % per year.
The immediate response is no doubt akin to "
But if you do that, there will be no incentive to build more." Was tere no incentive to build more in the '80s and 90s?
Did the developers all flee? I rather think not. Landlords nowadays are simply profiting from the critical shortage of supply which drives prices through the roof. So why can there be no controls, yet with incentives to build?
Developers are a cagey lot. Years and years back, when Concord Pacific was caught with its pants down selling condos in Vancouver exclusively in HK, Victor Li haughtily replied that if he was pressured further, he would pull up stakes and go elsewhere, theoretically depriving Vancouverites the luxury of CPs presence in town. But he did not leave, and we are all the richer for that.
The point is, will intervention to keep prices somewhat normal cause housing development to come grinding to a halt? I leave that to others to determine. I think it may be a good point to consider and debate, and, hopefully, to determine a course of action thereupon.