Yet, not everyone can aspire to own a home due to a variety of circumstances. While homeownership is appropriate for many, a well functioning housing market also provides housing for the lower-income members of society, such as the non-working elderly, the disabled, and the unlucky. Moreover, young workers just starting out are going to need low-cost housing.
Yet, it is clear that many local markets—and housing markets are generally very local in nature—are not providing a supply to match the demand. This is especially acute at the lowest income levels, and as a result, we continue to see increases in the homeless rate, which rose 18 percent in 2024. What is causing this? Well, if you’re a regular reader at mises.org you can already guess: government regulation and policy have a lot to do with it.
It seems that no government and very few people seem to want to trust housing to the free market. Therefore, there are government interventions into the market that are making more problems. For THEM every problem has only one solution: more state action, whether this will work or not, it does not matter because it gives more control to THEM. The only governmental solutions are more government.