Donor Matching Funds Announced!

A generous donor has offered to match all contributions dollar-for-dollar for the next $10,000 raised, doubling the impact of your donation and helping us reach our fundraising goal faster.

$17,360 of $60,000 raised

Why is Housing So Expensive?

by | Jan 5, 2020

Why is Housing So Expensive?

by | Jan 5, 2020

Something that VIA frequently gets requests for is help with rent payments. Why is it difficult for so many people to afford housing? The standard answer is that it’s those lazy landlords, sitting on piles of money and smoking cigars, who are to blame. This seems to make sense at first glance—after all, aren’t the landlords the ones who are charging the rent? But let’s take a closer look by examining a case from a simpler time: that of Pa Ingalls in Little House on the Prairie.

Pa Ingalls, though frequently short on luck, was an entrepreneur at heart. Anticipating that a thriving town would one day stand on the rolling grasslands, he picked a deserted spot nearby and started building a farm. This is called homesteading—in the words of John Locke, Pa Ingalls had “mixed his labor” with the land, and in doing so made it his property. He had built a nice little farm when disaster struck—worse than a prairie fire or drought. The government decided that it owned the land that Pa Ingalls had built on, and he had to leave to make room for indigenous Americans (who were, incidentally, forced to move from other lands that the government had also decided it owned—but that’s another story).

Fast forward a hundred and fifty years, and we see that the cause of the Ingall’s housing crisis is the same as our own: the government. At the simplest level, a person who needed a house could simply go to an unowned spot of land and build a shelter—not an ideal long-term solution, but everyone has to start somewhere. This simple expedient is forbidden, however, because the government has decreed that it owns all the land in America. Why, when it has not done anything at all to the land to make it the property of the government? Because, that’s why—and if you build a house on it, you’ll be kicked off and have your house stolen—if you’re lucky.

Fortunately, in a complex economy, there are people who are much better at building a house or apartment than the average person. In a free market, the high price of housing would cause people to want to build more housing—because they want the profits. But with more housing available, the price would decrease, since renters would have more options. So what stops that from happening? Again, the government. Zoning laws, building codes, and other rules and regulations prevent new housing from being created when it is needed. Not coincidentally, this makes some people demand that the government Do Something, which usually means to more government control over people’s lives.

That’s where voluntaryism comes in. Right now, all we who are more fortunate can do is help people pay the high costs that the government has imposed on everyone. But in a truly free society—one without Big Brother telling everyone what to do—how would housing be provided for the less fortunate? The possibilities are nearly endless. Simple charities—to build new housing or pay bills—would be one way. Subsidized or even no-cost housing could be made available by businesses—people are much more likely to shop at a store they live right next to than one across town. Micro living in low-cost rental living pods, house-sharing agreements, and other creative voluntary arrangements would flourish. In a voluntaryist society, the solutions to the housing problem are limited only by human imagination and initiative.

Reprinted from the Being Libertarian.

Jeffery Perry

Jeffery Perry

View all posts

Our Books

libertarian inst books

Related Articles

Related

TGIF: Damn Consumers!

TGIF: Damn Consumers!

Global free trade is about individual, not national, freedom—for consumers and producers who import raw materials, tools, and semi-finished products. Aside from its role as an aspect of personal liberty, free trade's efficiency benefits have been well-established...

read more
You Don’t Want to Get Out of Line…

You Don’t Want to Get Out of Line…

The fallout from the failed assassination attempt on former President Donald Trump during a rally in Butler, Pennsylvania continues. Speculation abounds that it was an “inside job,” the head of the Secret Service became “embattled” and resigned, and the assassin’s...

read more
Black Magic, Mad Science, and Super-Nazis

Black Magic, Mad Science, and Super-Nazis

On a London soundstage in 1987, a British pop star is filming a music video when he is interrupted by a visitor who has what he considers an insane request: You’re asking me to help you because Nazis from another dimension are trying to take over the world and only...

read more

Restricting Production

"At the bottom of the interventionist argument there is always the idea that the government or the state is an entity outside and above the social process of production, that it owns something which is not derived from taxing its subjects, and that it can spend this...

read more
America’s Palace Coup

America’s Palace Coup

On Sunday, July 21 at around 1:30pm Eastern time someone with access to President Joe Biden’s social media accounts posted that he was dropping out of the presidential election. The announcement was not on any form of official stationary and the signature was...

read more

Pin It on Pinterest

Share This