This seems to target the wrong part of the problem.
Rather than
"homes appreciate in value --> homeowners have an incentive to constrain supply of new housing to further appreciate the value --> we should somehow tackle the concept of homes being an investment"
we should instead focus on the aspects of our state/local governments that allow homeowners to have an influence on constraining new supply of housing to begin with.
Namely, zoning rules for any particular parcel of land should be handled by the state, not the local government. If a development fits the zoning rules, it should automatically be approved, with no endless town hall meetings that add tons of delays and cost overruns.
The way zoning and approval of housing construction currently works in much of the US is a prime example of what happens when you let too many opinions get in the way of progress.
It's no coincidence that states like Texas, with their less stringent zoning laws and relatively small NIMBY (Not In My Backyard) presence, do the best at allowing new housing supply to better keep up with demand. As a result, despite Texas' population exploding over the past 20 years, its housing remains relatively affordable compared to states like CA.
Rather than
"homes appreciate in value --> homeowners have an incentive to constrain supply of new housing to further appreciate the value --> we should somehow tackle the concept of homes being an investment"
we should instead focus on the aspects of our state/local governments that allow homeowners to have an influence on constraining new supply of housing to begin with.
Namely, zoning rules for any particular parcel of land should be handled by the state, not the local government. If a development fits the zoning rules, it should automatically be approved, with no endless town hall meetings that add tons of delays and cost overruns.
The way zoning and approval of housing construction currently works in much of the US is a prime example of what happens when you let too many opinions get in the way of progress.
It's no coincidence that states like Texas, with their less stringent zoning laws and relatively small NIMBY (Not In My Backyard) presence, do the best at allowing new housing supply to better keep up with demand. As a result, despite Texas' population exploding over the past 20 years, its housing remains relatively affordable compared to states like CA.