this post was submitted on 09 May 2025
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you think the developers will continue building if nobody gives them money at the end of the build? either through pre- ("give us money and we'll build you a thing") or post- ("come give us money for this thing we built")
why do bakers even charge for the bread they made?!! its just sitting on the shelf doing nothing?!
We don't want developers to continue building in the way they have been. McMansions (the most profitable house for them to build) in car-fucked-surburbia (the most profitable area because all the hidden costs are loaded onto the city in the future) are unsustainable, in the ecological sense, the environmental sense, and in the financial sense, as everyone trying to buy a house now is discovering.
Right now that building model is continuing because corporations wanting to rent are seizing up everything they can. There will be enough folks wanting affordable, sustainable housing, and we get that by building more densely and making cities nice to live in.
So let the current developers die, and a new model come in.
I think it's mostly regular homebuyers that give them the money (well, the bank, through mortgages).
Exactly, many people rent because they're credit constrained - they can't borrow the lump sum even though they have enough to pay the rent each month.
Banks are shit at supplying houses because they like to protect the (over)value(d) assets of their balance sheet - plus they ration credit inefficiently. (source some papers by joe stiglitz et al).
Council housing / social housing / rent controlled is the thing to fill the gap, the government can borrow againts its much more secure asset and pay the construction workers. Govt should not care about crashing a house price bubble; in fact it should want to - oh hang on . . . govts are controlled by landowners too.
Definately land (ownership) reform needed hopefully to democratise governments at least a wee bit more representative.