Read the story here. Advertise at Before It's News here.
Profile image
By Mark Wadsworth blog
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Housing Crisis : Supply vs Demand In Colour

% of readers think this story is Fact. Add your two cents.

In the top graph we have a snapshot of the UK housing market, with 27 million dwellings being supplied at an average of £220K each.  At £100K this represents the capital only constituent of that average home. 

The bottom graph shows the results of two different ways bring down average house prices (and rental incomes). 

The most popular option is to increase the supply of housing. Demand 1 stays the same, while supply is shifted to the right to position 2. The pink area shows the added costs resulting from this. 

The unpopular option  is to reduce demand by a reoccurring tax on the rental value of land(location). Supply 1 stays the same, while demand is shifted to the left to position 2. The blue area shows the reduced costs resulting from this. 

Of course in my graphs I’ve made all sorts of assumptions/guesses about about supply/demand elasticity which gives the following results.

The difference in the number of houses is 12 million x average capital cost £100K = £1.2trn

The numbers don’t really matter, but the principle does. Given economic policy should be about reducing costs, why on earth do so many economists recommend policies that to increases them?


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.