Housing prices won't ever stabilize as long as land is a tradeable commodity that 'stores' value. If people can make money with man-in-the-middle techniques and cheap money (low interest rates), then they will, and this will drive the real-estate boom-bust cycle we have that runs on ~18 year cycle (last bust was late 2008, early 2009, prior bust was around 1990)
Become communist (or communist lite) and reserve land ownership to the state, lock land price to its productive capacity (as assessed by the state), mediate sales and usage taxes based on the same. Prevent resale/sublet between individuals. Allow transfer of control only from individual -> state -> individual.
Or use a regulatory approach where only the state can set the price of land, and the price is based on well-defined factory (productivity, proximity to population centers, population density, etc).
All value in an economy arises from real estate. Real estate (and the related businesses, including banking and lending) drive all economic activity in the world.
Some cities in Europe have famously tried to place a ceiling on the price of a square meter, to varying degrees of success. The German federal government has notoriously reversed Berlin's decision to do so.
Since land belongs to everybody and to no one, perhaps we should let the government decide what to do with it. Or at least promote more co-op housing and land trusts.
Become communist (or communist lite) and reserve land ownership to the state, lock land price to its productive capacity (as assessed by the state), mediate sales and usage taxes based on the same. Prevent resale/sublet between individuals. Allow transfer of control only from individual -> state -> individual.
Or use a regulatory approach where only the state can set the price of land, and the price is based on well-defined factory (productivity, proximity to population centers, population density, etc).
All value in an economy arises from real estate. Real estate (and the related businesses, including banking and lending) drive all economic activity in the world.