Building More Housing Keeps Prices Down – As Long as they are Flats

Some great research from Thomas Forth

The logic goes like this,

  1. Leeds is a democracy and thus allows homes to be built where there is least opposition. There is huge opposition to homes in outer wards and little opposition to homes in inner wards.

  2. Home-builders build flats in inner wards and houses in outer wards. In effect Leeds has let the market build flats while restricting the number of houses.

  3. House prices in Leeds have risen while flat prices have not. Building enough flats has kept prices down. Logically, building enough homes would do the same.

This research is mirrored internationally and a lesson is that allowing developers ‘as of right’ to develop upzoned densities in accessible locations keeps prices down.

One thought on “Building More Housing Keeps Prices Down – As Long as they are Flats

  1. Isn’t the issue with point 3 the key here? Simply building what would supposedly be enough houses, must surely only be part of the solution. Unless young people can afford to buy those houses and, as is now being demonstrated by the increasingly poor condition of some of the most recent builds, maintain them, we are simply in danger of changing the nature of the crisis.
    I keep reading expert views that suggest that the private has never and will never solve the housing crisis, it’s not in their financial interest, not in the financial,interests of those who sell the industry the land to build on. The public sector is the one that builds to the levels needed to deal with this issue and in doing so, over time, dilutes the scarcity value of the housing built by the private sector.
    Will government get a grip of this issue; probably not. The nature of our political system these days, seems to suggest that our leaders have little or no vision beyond that of the next election and fear anything that is likely to undermine their chances of a return to power.
    If the research bears this out internationally, it must also show, that where the state controls the supply of housing,such as was the case in the days of the USSR, the term ‘housing crisis’, did not exist.

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