Public Misunderstands Housing Economics, Study Finds
Most people don't believe more housing reduces prices, blaming landlords instead.
Why it matters
- Public perception clashes with economic theories on housing supply.
- Misunderstandings may hinder policies aimed at reducing housing costs.
By the numbers
- Three surveys conducted among urban/suburban residents.
- Minority believe supply increases reduce prices.
- Bipartisan support for price controls and demand subsidies.
The big picture
- Economic theories suggest increasing housing supply lowers prices.
- Public blames landlords/developers, favoring price controls over supply increases.
What they're saying
- Commenters highlight corporate landlords' role in rent fixing.
- Housing seen as artificially scarce, like De Beers diamonds.
- Economic policies often unintuitive to the public.
Caveats
- Study based on surveys; sample size and details unclear.
- Public beliefs may be influenced by local contexts not captured in surveys.
What’s next
- Further research needed on how to align public perception with economic theory.
- Policymakers may need to address perceptions to implement effective housing policies.