Wednesday, May 26, 2021

How to make housing more affordable? One way might be to reduce the 6 key cost components.

If you are a regular visitor to Twitter, you will find many suggestions on how to make housing more affordable. Some believe you have to stop the foreign buyers from distorting prices. Others think the answer is to impose Empty Home Taxes, So-called Speculation Taxes, and Additional School Taxes on more expensive homes. I am one of many who think that it would be beneficial to reduce the amount of 'single-family' zoned land, and zone land for various types of multi-family homes to avoid lengthy and costly rezoning processes.

However, another approach is to simply reduce the six key cost components of housing: LAND, CONSTRUCTION, SOFT COSTS, MARKETING COSTS, FINANCING COSTS, and PROFIT.

So how might we do this? Here are some suggestions:

The answer is only if supply keeps up with demand. So how do we increase supply? That's another story for another day! 


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