The whole backbone of the economy is the rent. Every dollar that is not spent on rent can be spent on other products like video games, food, toys, and raising children. There's two ways to achieve this, either build enough houses, or stop importing too many immigrants. The only other way out is densification. where more room-mates squeeze in to the existing houses. For example 4 room-mates can pay $500 each instead of 3 room-mates paying $666 each on a $2000 rent.We can reduce the minimum wage and make things cheaper as well if the rent goes down. $10 an hour would be just as effective as $15 an hour if rent went down proportionately, and small dollar items would have more margins so things like dollar stores and fast food are more viable. The whole American economy was based on cheap rent and cheap mortgages, now it's time to make rent cheap again. We need a draft for house builders to force the rebalance of the housing equation.
>>58693941There is no incentive to build affordable housing though. Margins are too thin for home builders, and cities prefer McMansion developments because of the increased taxes. Not to mention that modern building codes are extremely prohibitive towards rapid construction.
>>58693941Capitalism don't have time for small marginal profits, neglecting the growing gini coefficient which ultimately raises taxes to fight crime and corruption it created.
>>58693941Shelter prices will keep cannibalizing other markets. The things you need will keep getting more expensive and the things you don't will get cheap. Discretionary spending will fall and cause local job losses.But people still need a place to live so just hope you didn't buy property near where the favelas inevitably spring up.
