Home prices and rent

What households can afford and what drives housing costs.

Issue discussion in preparation.

Principles

Affordability depends on household income and the full cost of obtaining and keeping a home.
Subsidizing demand without addressing limited supply can raise prices rather than create more homes.

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References

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What can happen when housing demand is subsidized but supply stays limited?

Prices can rise without more homes being created.

Subsidies automatically create additional homes.

Prices cannot respond to increased purchasing power.

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