Question

Since the politicians are unwilling to get rid of the rent controls, they offer you a list of suggestions to make housing more affordable: 1. Government provided housing 2. Tax deductions to renters 3. Tax breaks to construction companies who provide affordable housing. Explain the costs and benefits of each and which option would you suggest?

Answer 1

For statement 1; Government provided housing, this may be costly but the way that the people are provided with houses can decrease the number of homeless people. For statement 2; Tax deductions to renters, this has been going on for thousand years, taxes are used to provide services to people if the government properly used it. For statement 3; Tax breaks to construction companies who provide affordable housing, this is common to developers who intend to maximize their profit and the available area for people whose income is not that high. I would suggest statement 3.