Housing is becoming unaffordable across the world

[Porfirii]

In many countries, house prices have risen far more than wages, making it increasingly difficult for ordinary people, particularly first-time buyers, to afford a home. As people continue to move to large cities in search of better opportunities, the demand for housing keeps growing. In addition, many investors buy properties not to live in, but to benefit from rising prices.

Not only first time and ordinary people, even the middle-waged earners they're also having difficulty in purchasing their homes.

The monopoly of the real estate industry has been there and the wealthy people are in the game controlling the market per area.

•What could be the possible solution?

The government needs to help everyone. From affordable social housing and helping to subsidize the mortgages. The law of supply and demand is still applicable here.

When there will be more houses to occupy, the demand will become lesser. Thus, the price is.

Although I am not in favour of interventionism when it is not really necessary, I think that in cases like those that are occurring in several countries around the world, including mine, in which due to speculation and vulture funds, access to housing is practically impossible with current salaries, a series of limits should be imposed on the price of housing, either with a limit to the maximum price increase per year, or special taxes on large holders.

Here, with the most recent change in the housing law in Spain, there are the so-called "stressed areas" in which the practicable rise in the price of rent is limited, but it is clearly an insufficient measure seeing how the price of real estate is only rising.

[AmaGold70]

Indeed, house rentage is exorbitantly very high, and because of high cost of building materials, some people who are surpose to build their own house are now renting house to live, and cost of rentage has also pulled some persons from cities to areas where buildings or houses are more affordable, and some moving from new buildings to older buildings.
Government is actually the cause of these high cost of rentage, and they should be the one to manage, and regulate it. It is government policies that causes inflation, and cost of building materials, and it might be difficult to regulate cost of rentage when building materials are on the increase. However, if more towns, and cities are created, and and industries distributed across these towns, and cities, people will not cluster in one place, and can give avenue for house rentage price reduction.

[cryptomaniac_xxx]

Indeed, house rentage is exorbitantly very high, and because of high cost of building materials, some people who are surpose to build their own house are now renting house to live, and cost of rentage has also pulled some persons from cities to areas where buildings or houses are more affordable, and some moving from new buildings to older buildings.
Government is actually the cause of these high cost of rentage, and they should be the one to manage, and regulate it. It is government policies that causes inflation, and cost of building materials, and it might be difficult to regulate cost of rentage when building materials are on the increase. However, if more towns, and cities are created, and and industries distributed across these towns, and cities, people will not cluster in one place, and can give avenue for house rentage price reduction.

It's also about the growing population. Before with our parents, and we are very lucky if our parents have their own lot and houses for us to inherit. But there are people who really don't own houses and obviously we only rent.

But now, the time is very different, everything is crowded now and so with that, it's even very hard to buy because it's too expensive unless your really save a lot of money or again, inherit something from your parent.

So I guess for the next generation, and if we can give advise to our kids to really put in the effort to save money so that they can get housing loans, payable in 10-20 years so that when they retire they have a place to stay.

[sunsilk]

~snip~

Although I am not in favour of interventionism when it is not really necessary, I think that in cases like those that are occurring in several countries around the world, including mine, in which due to speculation and vulture funds, access to housing is practically impossible with current salaries, a series of limits should be imposed on the price of housing, either with a limit to the maximum price increase per year, or special taxes on large holders.

Here, with the most recent change in the housing law in Spain, there are the so-called "stressed areas" in which the practicable rise in the price of rent is limited, but it is clearly an insufficient measure seeing how the price of real estate is only rising.

I think it's the same for most countries, the price of housing skyrocketed that not even the middle class can afford it.

And even with that certain rule you've mentioned to limit the increase won't just stop it wholly. If the government continues to be actively intervening with it, what I think they can only do is to limit how many houses could be stopped in price increase.

But the whole thing of the continuous price increase is no way for them to stop unless they buy everything and subsidize it at a cost and loss.

Or a real estate bubble pops and due to the supply and limit, more houses - no takers so price goes down or they completely rotten and destroyed with no one benefits from it and the developers together with the government just have to deal with the losses.

[Unknown Op]

In many countries, house prices have risen far more than wages, making it increasingly difficult for ordinary people, particularly first-time buyers, to afford a home. As people continue to move to large cities in search of better opportunities, the demand for housing keeps growing. In addition, many investors buy properties not to live in, but to benefit from rising prices.

•What could be the possible solution?

The main issue is that the number of houses built is fewer than the number of people who need them. At same time, some people are buying multiple properties for investment, which reduces number of houses left for families who actually want to buy one and is actually causing pushed way higher than human affordability. There are multiple solutions to this issue. One possible solution for this issue could be that government can support construction of more houses and make it easier for first time buyer.

The government can also provide less expensive public transport that can help them live in less expensive areas, and government can also build low cost houses for people. Who are from middle class income families, government can also increase wage rate for people so that they can keep pace with the cost of living and save money to buy properties.

[letteredhub]

The only possible solution to the increasing demand for housings and the price hike that comes along with it as a result of the high demand from possible buyers and developers is for government to regulate the process thereby reducing the excesses of these developers who seek to exploits first time buyers who are eager to own their own properties.

It's the sole responsibility of the government to do it because if they refuse to do it then it would be business as usual, without the necessary regulations the developers would stop at nothing but to continue exploiting the gullible buyers.

[leonair]

In many countries, house prices have risen far more than wages, making it increasingly difficult for ordinary people, particularly first-time buyers, to afford a home. As people continue to move to large cities in search of better opportunities, the demand for housing keeps growing. In addition, many investors buy properties not to live in, but to benefit from rising prices.

•What could be the possible solution?

In fact, the population is increasing day by day in different countries and owning a house in those countries is a very challenging matter. Those who have a lot of money are investing in houses because in this context of inflation, investing in house property is very profitable. Here, the price of house property will increase as time goes by and on the other hand, he will be able to earn a regular income by renting his house. And for this reason, owning a house has become a very challenging matter for the common man. And in the future, their impact will increase further because of the increase in population and the increase in inflation rate in the country. And it is becoming almost impossible to deal with it.

[Alex077]

and government can also build low cost houses for people. Who are from middle class income families, government can also increase wage rate for people so that they can keep pace with the cost of living and save money to buy properties.

It sounds very easy. But the matter is not so simple, man. Government will make houses for poor but where does government's income come from? Do not forget govt's main source of income is vat and tax paid by people. So if govt goes to do housing project then the amount of vat and tax on people will naturally increase. This will appear as additional burden on  middle class people.

Also, these project can collapse due to administrative complication and inefficiency. More complicated matter is that this will discourage private investor too. So that they will reduce investment. As a result there is possibility of reducing the overall housing supply. Then new problems will arise.

[arwin100]

and government can also build low cost houses for people. Who are from middle class income families, government can also increase wage rate for people so that they can keep pace with the cost of living and save money to buy properties.

It sounds very easy. But the matter is not so simple, man. Government will make houses for poor but where does government's income come from? Do not forget govt's main source of income is vat and tax paid by people. So if govt goes to do housing project then the amount of vat and tax on people will naturally increase. This will appear as additional burden on  middle class people.

Also, these project can collapse due to administrative complication and inefficiency. More complicated matter is that this will discourage private investor too. So that they will reduce investment. As a result there is possibility of reducing the overall housing supply. Then new problems will arise.

Not good to increase the tax just for the sake of having funds to build houses, because there's a lot of possible issues will raise towards this matter.

Yeah government can do that if they want to push this situation to happen. But its not ideal action to do because there's no return to get if they push this kind of projects. Middle class earner are the one will suffer from possible increase of taxes and this is not good for those working class.

Low cost housing maybe good option with this and government will do partnership with private investor. Since with this maybe at least there's some economical movement happening which can help the economy to kick in.

[EFS]

Looking at average house prices and average salaries, even if someone saved every penny they earned without spending anything on food or anything else, it would still take at least 15 years to buy a house. And that's without even factoring in inflation, loans or everything else that affects affordability.

In a situation like that, owning a house naturally becomes almost impossible.

Unfortunately I don't think there's a real solution. People keep voting for politicians whose policies leave them poorer, then expect things to change. While policies that discourage or reduce private ownership already being discussed, it's very likely that a few generations from now, hardly anyone will be able to own a house.

[tabas]

None. Even the economists don't even think there's a solution to this housing problem. When things inflate so much like real estate, pulling down the prices is highly unlikely. We'd see a lot of these houses end up in the hands of the rich and they'll have it rent for all those who can't afford it. If there are caves nearby the town, I think that people would choose to live there for free without the cost and will have their energy supplied through solar panels. But developed areas, they're so expensive and someone who wants a dream home might just pass onto that dream for realizing how much is the cost.

[Crypto_Timothy]

Nobody has the time to build a home from scratch again, truth be told, nobody really has that time and just like you said with everyone moving to the city, getting a housse now it just too expensive especially as the demand for it keeps sky rocketing. Even if you see a house you like and start planning towards it, there is a high chance that when you want to actually purchase the house becuase you have worked years, you will end up seeing the price has gone higher because one thing with the housing market, the price always goes up every year. I really cant say i have a solution right now but the housing issues isnt something that's look like it is getting a solution anytime soon becuase just like you said, the investor who are meant to be solving these problems are buying properties just so they can add price and sell it higher or rent it to other people, i do think the solution to an extend can come from the government if they are intentional about tackling the issue itself.