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There are many obstacles like complex building codes, limited supply of building sites, credit requirements or limited public transport. Reduce them, respectively increase public transport, and more people have an opportunity to spend their money on real estate with the expectation of profits.
Spending.money on real estate with the expectation of profits is the problem in all of this.
Housing should not be an investment
Who should create real estate without profits?
If you supply housing as a government service, construction workers will play the same games as defence contractors. Do you expect rent to be cheaper?
What's wrong with profits? They compensate for the risk and effort that comes with creating real estate. They are only too high when there is no competition.
If profits are too high, what is preventing you from creating a new house and be rewarded with those profits? Change the world so that you, and thus others, have the ability to participate. Then housing prices will be fair.
No problem with builders making money.
Why don't I just erect an estate? Land is too expensive here, not the buildings. Very hard to make new land.
Land is expensive where many people live. There is enough land available in Alaska for estates
Not everybody can live in an estate and expect low travel time into the city center.
If you want to create new housing in a city, you have to share land. In other words, you have to build high-risers.
They want a million dollars (AUD) for 1000m2 of farmland where I am, 1 hour commute to the nearest city
It's on a flood plane
It's advertised to people to use as "land banking" on the off chance that it might get rezoned in the next 20 years.