Earlier quoted context omitted.
I’m not implying that immigration is the only reason for higher housing prices. My opinion is that 0% interest rates and loose credit are the primary reason. However, simple supply/demand would suggest that immigration AND 0% interest rates both affect demand quickly while supply requires securing land, building homes and getting approval to build homes takes significant time. Migrations are happening at a faster rat…
On HN and on tech twitter I often see this statement: “the reason rents are high is because we don’t build enough houses.” But I don’t think that’s really true, I think that’s very simplistic. The missing observation is that housing has become an asset class in a way it wasn’t in the past. Large numbers of people purchase houses to rent seek as landlords, and the only limit to the demand for rent seeking is the abili…
If we reduce the minimum lot size, then we reduce the minimum land purchase required in order to construct housing. And of course, lower upfront investment means lower risk and more newcomers are financially capable of buying in in the first place.
Lowering turnaround times for approval would also lower costs, and broadening the range of housing that gets by-right approval is a common way of doing that. Another is to just set a cap on the approval period, e.g. after 100 days, if you haven't received a response rejecting your application, then it's approved by default, and any rejection must be accompanied by a specific stated reason for rejection.
The overarching problem, though, is that there needs to be a political will to reduce housing costs (as you implied). But even that is partially missing the point, IMO - plenty of NIMBYs are acting for rational non-financial reasons - they're afraid that higher local density will increase local traffic and take up the finite local free parking spaces. Free parking is especially problematic, because paid parking will never satisfy people who see other people getting free parking in the same area. And of course the whole car-traffic problem is driven by cities being especially car-centric, with car traffic fundamentally not scaling up well compared to public transport.