If there's demand, companies will fund new construction. The problem is that planning, zoning, nimby restrictions means you can't
The invisible hand of the market certainly isn't all powerful, just like chickens aren't spherical and travel in a vaccuum, but when you stick it in a plaster cast as we do with housing, it becomes useless.
If you tax rental, what about owners? They won't care, they don't pay the tax.
> If there's demand, companies will fund new construction.
Not necessarily. Companies will fund new construction that gives them the best returns.
Because there are rarely luxury limits on what can be built on land, this results in the most square footage, luxurious house that the market will bear.
> If you tax rental, what about owners? They won't care, they don't pay the tax.
The invisible hand of the market certainly isn't all powerful, just like chickens aren't spherical and travel in a vaccuum, but when you stick it in a plaster cast as we do with housing, it becomes useless.
If you tax rental, what about owners? They won't care, they don't pay the tax.