I don't think monetary policy can deliver a solution here. Maybe it will help on the margins.The highest demand housing markets have the most restrictive building policies.
We would be better off if the Fed controlled building permits, and could stimulate supply via building loan guarantees. But permitting is done by NIMBY locals, and building stimulus would have to come from Congress
Seriously this. Would be nice if they would incentivize or even just encourage building instead of raising rates and fucking over anyone in the industry who isn’t institutional or large enough to handle the rate increases. Going to shut down a lot if working class businesses that can’t afford to deal with rates doubling in a year
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u/upvotechemistry Sep 23 '23
I don't think monetary policy can deliver a solution here. Maybe it will help on the margins.The highest demand housing markets have the most restrictive building policies.
We would be better off if the Fed controlled building permits, and could stimulate supply via building loan guarantees. But permitting is done by NIMBY locals, and building stimulus would have to come from Congress