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Should the government solve the housing crisis by building large numbers of affordable homes to force the market downward? Perhaps $200,000 homes in an area of 500k homes.

Last Updated: 27.06.2025 14:36

Should the government solve the housing crisis by building large numbers of affordable homes to force the market downward? Perhaps $200,000 homes in an area of 500k homes.

It has the whiff of the right solution: if you want homes to be more affordable, you need more homes.

People want affordable housing. People want to build affordable housing. Yet, it's not happening.

If the government could build homes for $200,000 (which I think you'd have to be rather naïve to think it could build what you think a $200,000 home is)…

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Answer that, and you'll have a much better idea what the root of the “housing crisis” is.

And not just a single buyer.

why are people not already building $200,000 homes like crazy?

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But now ask yourself a far more basic question:

What would stop a developer from buying up 10 acres, and constructing 80–160 housing units there?