There are many good reasons for real estate to be an investment vehicle. You won't convince someone to build a new apartment building if they can't make money. In fact, we really really want people to build more, better housing.
The current real estate "market" is certainly far from a "free market". If we live restrictions on supply, by removing things like:
- Minimum parking requirements
- Maximum height requirements
- Aesthetic requirements
There are also demand-side subsidies for home ownership that make it more expensive, such as the mortgage tax credit.
A land value tax is another way to encourage people to improve the land. https://localhousingsolutions.org/housing-policy-library/lan....
I agree we can't have real estate be both a great investment (increase faster than inflation) and affordable (decrease on inflation adjusted basis). I think adopting more of a free market here would really improve things for everyone.
Note: I also think congestion pricing + eliminating free parking would solve many of the related problems to this issue, and are important parts of a solution.
The current real estate "market" is certainly far from a "free market". If we live restrictions on supply, by removing things like: - Minimum parking requirements - Maximum height requirements - Aesthetic requirements
There are also demand-side subsidies for home ownership that make it more expensive, such as the mortgage tax credit.
A land value tax is another way to encourage people to improve the land. https://localhousingsolutions.org/housing-policy-library/lan....
I agree we can't have real estate be both a great investment (increase faster than inflation) and affordable (decrease on inflation adjusted basis). I think adopting more of a free market here would really improve things for everyone.
Note: I also think congestion pricing + eliminating free parking would solve many of the related problems to this issue, and are important parts of a solution.