I haven't read the article in question (can't find the link), but this seems more or less exactly like the line taken against subprime borrowers: it's not the fault of the sellers for engaging in moral hazard and taking risks, but the buyers for...uhhhh...reasonshttps://twitter.com/SpencerHeckwolf/status/1349056480717189124 …
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Seems mostly reasonable. The core argument is that the problem is high demand and white people with too much money to burn, yes? And the proposed solution is "build more housing"? There are other things going on though (like lenders to landlords necessitating certain rents)
There are more people investing in housing than just individuals, and these people have expectations that their investment is of a certain type. Investing in housing for the poor is a fundamentally different type of investment that is less interesting to many.
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Who doesn't expect any investment to provide a return? Developers can invest in housing at their own risk. If we allowed developers to build homes on a large scale, some would make money, others would not.
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Right but, it's not just about volume, it's about the nature of the investment. Not all housing is an equal investment. Housing for the poor, for specific demographics etc. will tend to take on the character of a qualitatively different type of investment that is less appealing.
End of conversation
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