3 thoughts on “How to define Britain’s housing shortage away”

  1. Posted 22/10/2017 at 18:24 | Permalink

    Wonderful work Bruno! Particularly like the methodological take down.

    Liberalising land use law ought to be the government’s priority. Instead, having erected barriers to private development, they claim that a “market failure” requires them to launch a massive new programme of state home building.

  2. Posted 25/10/2017 at 19:53 | Permalink

    Pull the other one mate, it’s got bells on. I bet you agree with Greenspan and Bernanke that there’s no such things as bubbles too.

    You talk about the excess of demand over supply of housing. But if you’re such a strong believer in demand and supply arguments, what about the demand and supply of credit? People borrow money to buy houses yet you don’t see the fundamental link between the price of that borrowed money and the amount they can afford to spend on a house? (we can both agree that ‘demand’ for ‘property’ is effectively inexhaustible)

    You’re arguing that property prices are fundamentally driven by the balance of population / households & the amount of housing stock.

    So how would you explain the collapse in US, Irish, or Spanish property prices post 2008? Did the number of households collapse? Did housing stock magically disappear?

    You put a latin quote in there which to be honest I couldn’t be bothered looking up on google translate. But I doubt that singular quote in an archaic language covered the massive holes in your threadbare argument.

  3. Posted 08/05/2020 at 01:50 | Permalink

    T problem here is that it assumes housing is a good and therefore normal laws of supply and demand apply. This is flawed because homes are not simply goods but assets. Moreover, the author says that the only explanation for young people not wanting to move is because of affordability (as if that is the only possible explanation). That is undoubtedly part of it but if you have fewer young people getting married or forming long-term relationships then that could also be a factor not simply affordability of housing – for eg. you may be able to afford to buy if you had a spouse. Or it is a simple cost-benefit decision to stay at home if you live in the capital because you may prefer saving up than spending on rent (even though in theory it is perfectly feasible to do so). That does not prove, however, that a lack of supply is the cause.

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