Why We Need Housing Supply Reform Immediately

Take a look at the charts on pages 5-6:


In the UK and France, home to two of the most supply constrained markets (Paris and London), nearly all of the increase in capital to output ratio is due to the spiking value of housing.  There’s no reason for this to be the case whatsoever.  The high cost of housing is an economic rent and does no one, except its owner any good.  Time for it to go.

Edit: Page 23 shows the same chart for the USA.  Housing has been growing, albeit at a slower rate.  Other domestic capital is an additional large driver of Wealth:Output unlike in Europe


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s