Answer to Question #101391 in Economics for Lovepreet

Question

find at least 3 countries or economies that have housing price stabilization policies and measures. Provide your suggestion on best measure that can be used in Melbourne housing market.

Answer 1

Governments intervene in housing markets to enhance people’s housing opportunities

and to ensure equitable access to housing. These interventions include fiscal measures, such

as taxes and subsidies; the direct provision of social housing or rent allowances; and various

regulations influencing the quantity, quality and price of housing.

Social housing is one way for governments to provide low-cost housing to poorer

households. In general it consists of rental dwellings, although home ownership can be

common in some countries (e.g. Italy, Mexico and Spain). The importance of social rentals

varies across OECD countries. In some countries it accounts for the majority of rentals

(e.g. in Austria, the Czech Republic, Ireland, the Netherlands, the Nordic countries, Poland

and the United Kingdom), while playing only a minor role in others (e.g. Hungary,

Luxembourg, Portugal and Switzerland).