As in America, much of Europe is suffering a severe housing shortage. The underlying cause of Europe’s housing shortage is no different from that of our own, and likewise, the solution to Europe’s housing shortage is no different from the solution to our own. In Europe’s most attractive cities, there are not enough homes to comfortably absorb the demand for housing. To keep housing costs in check, policymakers must encourage new construction and grow the housing supply. But rather than doing everything within their power to cut red tape and speed the building of new homes, European policymakers are discouraging investment in housing, leaving regulations on the books untouched and even proposing more regulations that will surely prove counterproductive. – Bloomberg
