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The Great British Housing Famine
Yes, it really is as simple as building more homes
Affordability requirements following a 60-30-20 rule which provides tax incentives for property if they agree to a price such that households making 60% of the local area’s median income do not need to pay more than 30% of their wages on rent or mortgage payments in 20% of units. It forces cities to play host to inefficient labour markets, encouraging high-productivity workers to give up and seek better living standards elsewhere, while not addressing the core reason for the affordability crisis, and doubling down on the deadweight losses of restricted housing supply. Nall, Elmendorf, and Oklobdzija, found that: ‘30%-40% of Americans believe, contrary to basic economic theory and robust empirical evidence, that a large, exogenous increase in their region’s housing stock would cause rents and home prices to rise.’
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