Rising wealth dispersion 💰 and stagnating housing supply 🏠 explain the increase in US housing costs. Demand-side policies (e.g. down payment assistance) cause upward pressure on house prices while supply-side policies (e.g. tax credits for development) lower house prices by increasing the housing stock.
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#HousingCrisis #WealthDispersion #RealEstateTrends #AffordableHousing #EconomicPolicy
Read Full Article
#HousingCrisis #WealthDispersion #RealEstateTrends #AffordableHousing #EconomicPolicy
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Curbing Rising Housing Costs: A Model-Based Policy Comparison
(Summer 2025) - Recent decades have seen house prices grow strongly relative to incomes, making housing ever less affordable. We develop and quantify a model of segmented housing markets to study the drivers of rising housing costs and to evaluate policies…