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: 30.06.2025 02:46

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.

And not just a single buyer.

But now ask yourself a far more basic question:

It has the whiff of the right solution: if you want homes to be more affordable, you need more homes.

Rich people actually spend a whole lot, but the market is the market and there is only one price for the same item and it is much easier for the rich to buy it or lease it or rent it because its expensive to be poor. So why do people have such ideas?

People want affordable housing. People want to build affordable housing. Yet, it's not happening.

Answer that, and you'll have a much better idea what the root of the “housing crisis” is.

why are people not already building $200,000 homes like crazy?

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What would stop a developer from buying up 10 acres, and constructing 80–160 housing units there?

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)…

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