The Housing Market's Fragility: Is Building More the Answer?
The prevailing belief is that increasing housing supply will lower prices and solve the affordability crisis. However, recent price drops in several US cities have triggered panic, not celebration. Developers are pulling out, lenders are tightening, and policymakers are scrambling to bail out the system. The article argues the problem isn't a lack of supply, but the fragility of the financial system. The current housing market treats homes as financial products, not shelter; price drops are seen as risk signals, leading to decreased, not increased, supply. The article calls for a bottom-up approach, focusing on local, small-scale affordable housing to build a healthier, more resilient housing ecosystem, rather than relying on national-level financial engineering and subsidies.
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