A lack of homeownership fosters a transient mindset, where individuals feel like "tourists" in their own cities. This detachment discourages engagement in local politics and community building, as renters lack the long-term, financial, and emotional investment of owners.
Overly complex building regulations result in regulatory capture. Only large, well-connected developers can navigate the system, creating a moat that stifles competition from smaller innovators and keeps prices artificially high for consumers.
Unaffordable housing is the root cause of many social problems. It statistically correlates with lower marriage and birth rates, increased alcohol abuse, and declining mental health, as it prevents young people from achieving a key milestone of adulthood.
The housing crisis persists because its core issue—a lack of supply—is invisible. Unlike a tangible disaster, people don't see the communities that were never developed. This makes it harder to generate the urgency and political will needed for a solution.
Homeowners who see their property value double aren't actually wealthier. If they sell, they must buy another, equally inflated house. The "gain" is purely psychological unless they relocate to a cheaper area or downsize, which most people do not do.
Politicians will continue running large deficits as long as the bond market tolerates it by keeping interest rates low. The ultimate correcting mechanism for government spending isn't political discipline, but the bond market's impersonal decision to raise rates, forcing fiscal responsibility.
While investors often sell stocks impulsively after short periods, people typically live in their homes for decades. This long-term commitment is the only way many average individuals give compound growth the necessary time to build substantial wealth.
Unlike past generations who saw wealth displayed by unrelatable celebrities, social media drowns users in images of peers who appear richer and happier. This constant comparison to perceived equals, rather than distant idols, makes inequality feel more acute and personal.
Politicians favor demand-side housing policies because it's easier to blame a villain (e.g., corporations) and offer a quick fix (e.g., lower rates). Addressing the root cause—a lack of supply—is a slow, multi-year process that doesn't fit into election cycles.