Sunday, February 19, 2012

On the Housing Crisis

I have been close to the housing issue on and off for years, and am constantly challenged by the lack of analysis that is provided for it. The Right is particularly bad - open up more land, they trumpet, eyes glistening with lust at the prospects of new, upmarket sub-divisions, and with nary a thought for low-income families. For that is part of the real problem - in a low-income economy, inequality has a perverting effect on the housing market and the distribution of housing stock. The point is that, in general high inequality and reduced, liveable housing solutions require state intervention -  in terms of state build and, often, serious regulation of the housing market. Private sector solutions will inevitable service high-end, high return interests first; they will not consider the low-end unless encouraged by the state. I have argued for years for a better state-driven policy and intervention into housing; neither ruling clan is willing to grasp this nettle. Until a government does, the crisis will continue.

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