Quote:
Originally Posted by blankall
I don't see how that works unless there are also other fundamental changes to supply, labor, etc... if the major markets have already hit their production capacities, how does giving breaks to rental properties increase supply?
|
I imagine the thinking is that in the current environment, nowhere has hit maximum production capacity. Housing starts in Q1 + Q2 2023 were about 15% lower than they were in that same period in 2021 and 2022. That's a consequence of interest rates and macroeconomic conditions, rather than labor supply, zoning, or permitting. So the government likely thinks if they can tip the scales to make some non-viable projects become viable all of the sudden, then they can get housing starts back up closer to maximum capacity.