Ponzieconomics and housing


This won’t end well, because in spite of the tone of debate on migration, we desperately need migrants.
In building, we still suffer a skills shortage: not enough UK citizens have bricklaying, plumbing, and roofing skills to build anywhere near as many houses as we need. The casual racist might continue to push the evidence-free argument that the housing crisis is caused by an increase in migration putting pressure on housing even though this has been debunked time and again, but if migrants leave it will become even more difficult to staff building sites and complete houses, and house prices will rise yet again.

For more: https://www.theguardian.com/housing-network/2017/feb/17/hard-brexit-worse-housing-crisis-eu-eib

This quote is a good example of Ponzieconomics. The author seems not to appreciate that one factor increasing demand for housing comes from population increase, a substantial proportion of which arises from immigration into the UK. More people results in more demand for housing. The solution then is to get more building workers to move to the UK to build more houses. Of course the building workers will need houses which means we need more building workers to move to the UK!

The report which the author refers to as having debunked the view that migration puts pressure on housing is rather more nuanced. What it says is that new immigrants tend to live at higher densities than the resident population and are more likely to live in private rented rather than social rented accommodation. “However, the longer they stay, the more their housing consumption resembles that of similar indigenous households.” The end result is that people moving from one country/location to another do increase housing demand!

[As we have previously stated, there are more houses than households; pressure on housing is also a consequence of demand from investors/holiday homes and second homes].

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/257238/lse-housing.pdf

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