Some of the world's largest cities property prices like San Fransico and London just keep shooting out of sight. And it's taxing long term property owners and pricing average wage earners out of the city .
So what's the solution and why can't this be managed properly?
The main issue is most major cities have strict housing regulations that are limiting the number of new homes that that can be built. So the demand for housing is far out weighed by the supply. For example SF had an increase of 60k+ jobs last year but less than new 5000 housing unit came on the market.
Tokyo has also experienced a strong growth in jobs but they have been able to keep their housing market in check even in the most expensive trendy area of Tokyo (shown in the chart below).
Tokyo has learned a long time ago on how to deal with housing demand. For example, Tokyo issued over 142k permits for new housing units. That's just he one city in Japan. DurIng the same period of time, the whole state of California only issued around 63k permits for new housing units. The size of the states is about the saize of Japan and has 3 times the population of Tokyo. But there is no wonder after looking at the nubmers why demand for housing has outpacsd supply in the Bay Area and other locations.
So it souunds like city planners around the world that are having housing shortages need to come to Tokyo to learn what they are doing here.
But this doesn't surprise me that it's caused by regulators dragging their feet but it's also all the environmental studies you have to go through just to get approval.
My friend bought 5 acres and wanted to get a building a permit. The land had fenced areas off for horses that were used for years. The guy came out the day it rained and accessed a 5 x 7 ft section right in the middle of one of the pastures was a wet land because he saw a puddle there that a bird was drinking water from. So he forced them to fence off this section right in the middle of their field and under penalty of fines to maintain that area as untouched.
I'm all for protecting the environment but when the regulators are left to make decisions on their own like the above is just a system run by regulators whim. And they can make arbitrary decisions that can destroy property value and delay construction projects for years if it went to court to try to fight it.
LOL Dude... I also wrote about housing today for a new GREEN building project in downtown Seattle. https://steemit.com/news/@incomemonthly/cool-new-green-building-coming-to-seattle-s-trendy-capital-hill
But this doesn't surprise me that it's caused by regulators dragging their feet but it's also all the environmental studies you have to go through just to get approval.
My friend bought 5 acres and wanted to get a building a permit. The land had fenced areas off for horses that were used for years. The guy came out the day it rained and accessed a 5 x 7 ft section right in the middle of one of the pastures was a wet land because he saw a puddle there that a bird was drinking water from. So he forced them to fence off this section right in the middle of their field and under penalty of fines to maintain that area as untouched.
I'm all for protecting the environment but when the regulators are left to make decisions on their own like the above is just a system run by regulators whim. And they can make arbitrary decisions that can destroy property value and delay construction projects for years if it went to court to try to fight it.