New Housing Often Built in Wrong Locations Due to Simple, Hard-to-Fix Reasons
Neue Wohnungen entstehen häufig nicht dort, wo sie gebraucht werden. Das klingt nach Marktversagen. Der wahre Grund ist viel einfacher – und umso schwerer zu beheben.
The construction of new housing frequently occurs in areas where it is not needed, a phenomenon that appears to stem from market failures. However, the underlying reasons are simpler than complex market dynamics and are proving difficult to resolve. This suggests systemic issues in urban planning or development incentives are leading to misallocation of housing resources.
This issue is important for understanding urban development challenges and housing affordability, as inefficient construction patterns can exacerbate shortages and increase costs.
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