Financial Markets - Government vs Investors (Housing)

There is a fundamental disconnect between a government’s mission and an investor’s mission. Government seeks to make their citizens lives liveable with dignity and stability; investors seek solely to maximise profits. This mismatch at its core, with capitalism as the dominant world economic system, exacerbates housing crisis and homeless rates.

Capitalism, by nature, commodifies basic human needs, including shelter. Housing goes to the highest bidder, turning homes into mere investment vehicles, and the average person is left scrambling for increasingly scarce, unaffordable options.

Beyond the economic system, governments and investors' psychology plays a large part in the increase of unaffordable housing. Governments, lulled into complacency because of fast economic growth, continues to auction off their land and resources as if they are limitless. Investors, seeking to maximise returns with minimal efforts, buy out multiple properties and drive rental prices higher. Both practices negatively impact the citizens, who have to carry the brunt of the system.

Housing, like food and education, is a basic human right. Building on top of the report, government that invests in its people by providing housing, education, and social services, will cultivate a fundamentally stronger economy. When the nation is efficient, stable, and equitable, it will naturally draw investors in.

Housing options should first serve its citizens, then investors. However, governments cannot afford to alienate investors. Without investments, the economy is at risk of stagnation, which will also then negatively impact citizens. The solution, though simple in concept, it is hard to implement, which is that government policies have to find a balance in providing for citizens and while still attracting investors.