We have often written about housing and bubbles in this blog. Here is a collection of short opinions on the UK situation by The Guardian. I find the opening paragraph particularly interesting, though the commentator does not develop it further. I strongly believe that the issue of housing is not just about the number of available homes, but mostly about their affordability. And that depends as much on the spending capacity of people as it depends on the building industry.
“Everybody says we must build more houses. I agree, but we cannot build our way out of the housing crisis. Rising prices are central to the business model of the housing sector, but in the end the market depends on whether new mainly young households can pay these prices. They are being squeezed by increasing income inequality, debts, childcare costs and limited mortgage availability.”
via City living and the housing crisis | @guardianletters | Society | The Guardian.