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Has any country actually solved the housing crisis?

So there's a ton of countries that I've heard have had truly unaffordable housing for decades, like:

  • The UK
  • Ireland
  • The Netherlands

And I've heard of a ton of countries where the cost of houses was until recently quite affordable where it's also started getting worse:

  • Germany
  • Poland
  • Czechia
  • Hungary
  • The US
  • Australia
  • Canada
  • And I'm sure plenty others
  1. It seems to be a pan-Western bloc thing. Is the cause in all these countries the same?
  2. We've heard of success stories in cities like Vienna where much of the housing stock is municipally owned – but those cities have had it that way for decades. Would their system alleviate the current crisis if established in the aforementioned countries?
  3. What specific policies should I be demanding of our politicians to make housing affordable again? Is there any silver bullet? Has any country demonstrably managed to reverse this crisis yet?
122 comments
  • I suppose it depends on how you'd define "solved". If we're talking about basically eliminating homelessness, Cuba has done immense work in that regard. Say what you will about the Cuban government, but Cuba has a near-zero homeless population because the government has built a ton of housing and caps rent at 10% of individual income in that state-owned housing. Cuba is also a country with a tradition of multi-generational extended family homes, so there's a greater chance that you'd be able to move in with a family member if you fell on hard times. Home ownership rate is around 85% compared to 65% in the US. All of this is nothing new, though, so it's hard to say if it's the answer to current issues of housing that's largely driven by corporate greed, but it certainly sounds like it couldn't hurt. Granted, I've seen people give examples of homes that are rather small and spartan, where the walls are made of bare cinderblock and generally aren't very pretty, but that's way better than being homeless even if some of the housing isn't as nice as others. I've also examples of state-owned housing lived in by the same kinds of people, but are really quite nice as well. Whether the US government would ever do this, though, seems unlikely. Not at the scale we'd need and not for so cheap, anyway, especially not with Trump coming to office. I can't really speak for the governments of other countries, however, and I'm no expert on Cuba either, so I could have gotten some things wrong. The US embargo to Cuba since the 90s also means that Cuba has had a more difficult time procuring building materials for the low-cost housing that's helped so many, which has led to an increase in size and number for those extended family homes over the years.

    • Yeah. I was in Cuba recently. A lot of poverty but very safe (in Havana at least, where I was. Can't speak to the rest but I'm told it's similar). Nobody sleeping in the streets. People were fed, though with very limited choices and portion.

      Then you look at some cities in the USA, the richest country on earth and there's people living in the streets, begging for food. You feel unsafe waiting down the street. Tons of desperation and even those with housing feel like they're walking a tightrope.

      Not saying Cuba's situation is "better", it's definitely nuanced though. And we should really see what Cuba could do if the US would stop trying to cripple it as it has for to many decades. It's unjustifiable and disgusting.

      🇨🇺♥️

      • You make a very important point about life which I realized recently: that things are not necessarily better/worse, just 'different'.

  • I live in the United States, and as I understand it the housing crisis is caused by several factors.

    1. The lowest level of zoning is typically residential single family. This means small scale owners and developers cannot increase supply by taking a house and adding to it. Either by adding extensions, subletting, or even building a mini-apartment building. To add to this, US regulations require apartment units to have access to 2 staircases, in the event of a fire. This is good for safety, but greatly restricts style of apartments to hotel styles, and increases costs, so smaller apartments don't make as much sense. This requirement should be able to be waved in the case of fire resistant building materials.
    2. Speculative land owning. Some property owners simply sit on properties in developing areas, waiting for its price to increase, and since tax is based on the value of the total property (land+building), a decaying building reduces the cost of owning that land. To fix this, we should be taxing the value of the land instead, punishing speculators, while incentivising people to improve their land (by building housing).
    3. Overuse of cars. Even when places want to expand housing, the complete and utter reliance on cars as transportation in the US leads to backlash for increasing housing, as the perception is that it will increase traffic. To combat this cities need to rethink their transportation strategies to radically increase things like bus and bike lanes. Even when cities do have buses, the strategy funded by the federal government is abysmal. For example instead of running buses that can hold 15 passengers and run every 15 mins, cities will instead run buses that can hold 50 people every hour, and so these buses run mostly empty with 2-3 passengers.

    The main policy changes that we need are less restrictive zoning, tax speculators, and diversify urban transport. But resistance is heavy, many politicians themselves are land holders and do not want to implement these changes, or to anger those that do. Landholders generally have more political voice, power, and wealth.

122 comments