this post was submitted on 09 May 2025
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[–] [email protected] 5 points 9 hours ago (1 children)

Developers build houses and neighborhoods all the time without landlords paying them to do so. I'm actually not sure if landlords paying for building is common at all. Though, developers do all kinds of shady and harmful shit too.

[–] [email protected] 2 points 8 hours ago (1 children)

you think the developers will continue building if nobody gives them money at the end of the build? either through pre- ("give us money and we'll build you a thing") or post- ("come give us money for this thing we built")

why do bakers even charge for the bread they made?!! its just sitting on the shelf doing nothing?!

[–] [email protected] 2 points 8 hours ago (1 children)

I think it's mostly regular homebuyers that give them the money (well, the bank, through mortgages).

[–] [email protected] 1 points 4 hours ago

Exactly, many people rent because they're credit constrained - they can't borrow the lump sum even though they have enough to pay the rent each month.

Banks are shit at supplying houses because they like to protect the (over)value(d) assets of their balance sheet - plus they ration credit inefficiently. (source some papers by joe stiglitz et al).

Council housing / social housing / rent controlled is the thing to fill the gap, the government can borrow againts its much more secure asset and pay the construction workers. Govt should not care about crashing a house price bubble; in fact it should want to - oh hang on . . . govts are controlled by landowners too.

Definately land (ownership) reform needed hopefully to democratise governments at least a wee bit more representative.