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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: 24.06.2025 00:15

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.

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

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

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

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But now ask yourself a far more basic question:

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)…

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

Do you agree that AI renders much human cognitive activity (knowledge work) as the equivalent of the old factory floor?

And not just a single buyer.

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