Practically speaking, the areas you speak of will always have high demand, no matter the type of demand. It's never going to be affordable. Accept it.
Second, somebody living in a small super expensive apartment whilst fully working remotely is likely to have a miserable time (COVID situation). If they would have the type of job security guaranteeing they can continue working remotely for a long time, surely many of them might leave. Those that stay likely have non-work reasons to stay, like proximity to family or other attractions of the city.
As for home ownership, it's a market, and there's no such thing as morality in markets. If you think that sounds cruel and selfish, try this simple thought exercise: the people currently priced out of owning a home, imagine they somehow do acquire a home. Now add 10 years and their homes appreciating 50% in value. Now they sell, do you honestly believe that these people that were all about social fairness and morality now apply a 50% discount to the buyer, out of the goodness of their heart?
I don't think so.
Likewise, if something happens to your home (expensive repairs, mortgage issues) do "moral" people come to help and compensate you? No. Your problem, you're the owner.
Anyway, I do empathize with the point, and I think we need a systemic change. The spreading of work/cultural locations into more places/hubs. The idea that you can cram ever more people in a tiny area and somehow keep this stable and working is just a ridiculous illusion.
Extra supply doesn't really work in these areas, so indeed...reduce demand, by moving it.
Is it okay to sell people? Do you own your children? If you own land, do you also own anyone who lives on that land?
At various point in history answers to all of the above were yes.
Should we have a market for organs? There is a market for intellectual property, but what is intellectual property - maybe there should be a patent for everything that exists, say a pencil, and they should never ever expire. So noone except that owner should be allowed to make pencils.
Should we have laws against Dumping, self dealing, wash teading, antitrust, insider trading, tragedy of the commons, negative externalities, collusion, cartels, misselling?
All those behaviours arise naturally from markets.
Currently, a home is personal property and thus a market. The ownership of assets is a fundamental building block of a modern capitalist society.
The point of owning a home is to have a house to live in, which you like and can customize to your liking. Another point/benefit is to take control of your living expenses and to be independent from a landlord.
The fact that real estate prices are skyrocketing has nothing to do with the idea of home ownership, it's a side effect of an imbalance in supply and demand. Yes, some investors will abuse this imbalance to build wealth but the true root cause is the imbalance in itself that makes it possible.
It's not rocket science. You cannot keep cramming ever more people in the same area. Supply will never meet demand. No amount of policy or taxation will solve this. The only structural long term solution is to address the demand side. It should not be required for half the population to move into a handful of cities just to have a decent job.
Second, somebody living in a small super expensive apartment whilst fully working remotely is likely to have a miserable time (COVID situation). If they would have the type of job security guaranteeing they can continue working remotely for a long time, surely many of them might leave. Those that stay likely have non-work reasons to stay, like proximity to family or other attractions of the city.
As for home ownership, it's a market, and there's no such thing as morality in markets. If you think that sounds cruel and selfish, try this simple thought exercise: the people currently priced out of owning a home, imagine they somehow do acquire a home. Now add 10 years and their homes appreciating 50% in value. Now they sell, do you honestly believe that these people that were all about social fairness and morality now apply a 50% discount to the buyer, out of the goodness of their heart?
I don't think so.
Likewise, if something happens to your home (expensive repairs, mortgage issues) do "moral" people come to help and compensate you? No. Your problem, you're the owner.
Anyway, I do empathize with the point, and I think we need a systemic change. The spreading of work/cultural locations into more places/hubs. The idea that you can cram ever more people in a tiny area and somehow keep this stable and working is just a ridiculous illusion.
Extra supply doesn't really work in these areas, so indeed...reduce demand, by moving it.