fbpx

Latest Posts

Home

Facebook

Twitter

Search
About

Subsidies never make anything,even housing, affordable

Lack of affordable housing has been a big issue in most growing cities around the country with no exception to the twin cities. Of course we cannot pretend to ignore the need for action if this problem is to go away. But what we also need to keep in mind is the fact that to effectively abate any issue, we need to address the root cause of the problem. And providing subsidies does not in anyway address the underlying issue with lack of affordable housing.

So much has been tried to help reduce the cost of housing to low income individuals. And efforts have also been wasted trying to pull people out of homelessness. There is nothing new with the current effort to push for legislation to create a rent subsidy program for low income individuals. Just like any subsidies, housing subsidies will not make housing cheaper; it will push cost on to tax payers without addressing the root cause of the problem.

what needs to be understood is what has been said over and over again; in as long as housing supply fails to meet increasing demand affordable housing will never be achieved. What is standing in the way of people from accessing housing is the fact that regulations exist that hinder provision of housing, negatively affecting prices in the long run.

I highly doubt anyone wants to be in a society where rising costs of living are constantly being pushed on to taxpayers. What that does is make everyone worse off and much poorer. Cities have built their way out of unaffordable housing by minimizing regulatory burden imposed on commercial housing providers. To have affordable housing homes have to be built in great abundance. What big cities with low housing price, like Tokyo, have in common is deregulated housing policies that allow for housing supply to keep up with demand. And that is what needs to be focused on in combating unaffordable housing.

Comments

Subscribe

Categories

Upcoming Events

  • Master Class: How good are Minnesota’s public schools, really?

    Location: Online Event

    Sign up HERE for this online event! Center of the American Experiment invites you to join us for a free 4-week live online course in public policy, featuring our expert economists and policy fellows. The first four Wednesdays in April, we will broadcast right to your laptop or phone during the noon lunch hour! Each Zoom webinar will be moderated by President John Hinderaker in a way that allows for maximum audience participation. And if you can’t make the live airing, everyone registered will be sent a video recording of the event after it has ended. This is your chance…

    Register Now
  • Master Class: How regulation affects your everyday life

    Location: Online Event

    Sign up HERE for this online event! Center of the American Experiment invites you to join us for a free 4-week live online course in public policy, featuring our expert economists and policy fellows. The first four Wednesdays in April, we will broadcast right to your laptop or phone during the noon lunch hour! Each Zoom webinar will be moderated by President John Hinderaker in a way that allows for maximum audience participation. And if you can’t make the live airing, everyone registered will be sent a video recording of the event after it has ended. This is your chance…

    Register Now
  • Master Class: Everything wrong with the Green New Deal

    Location: Online Event

    Sign up HERE for this online event! Center of the American Experiment invites you to join us for a free 4-week live online course in public policy, featuring our expert economists and policy fellows. The first four Wednesdays in April, we will broadcast right to your laptop or phone during the noon lunch hour! Each Zoom webinar will be moderated by President John Hinderaker in a way that allows for maximum audience participation. And if you can’t make the live airing, everyone registered will be sent a video recording of the event after it has ended. This is your chance…

    Register Now