Sunday, May 25, 2014
Supply can never catch up with irrational demand?
At the Top of an Overheating Housing Market Ã¢Â€Â“ Ã¢Â€Â˜Relaxing PlanningÃ¢Â€Â™ can Make Matters Much Worse
Interesting blog on the idea that more supply will solve our housing problem: "So if the market is near its peak supply side measures such as relaxing planning can make matters worse. Planning is a medium-long term measures. By all means increase supply, as a long term well planned and rational way looking at a horizon of 10, 15, 20, 30 years through Garden Cities and other measures, not in a crazy rush which may simply pop the bubble and leave house builders like in 2009/10 with a massive burden of landbanks the debts of which they cannot service and which will drag down house-building levels to historically low levels."