@jpguthrie6669

1 week ago

I live in Tokyo, Japan, one of the largest and most densely populated cities on earth. Yet, housing in Tokyo is affordable, and the entire country of Japan (123 million people) has half as many homeless as the city of Sacramento (half a million). Why is housing affordable in Tokyo? First, there is minimal housing and construction regulation. There is virtually no zoning, meaning you can build a home, shop, school, or factory pretty much anywhere, or even combine all of these into a single structure. Second, neighboring landlords have practically no say in what you build on your own property, regardless of the effect your new structure may have on the value of their property. Newer buildings, as a rule, drive down the value of older buildings, which may not seem fair to their owners, but the effect is to keep the overall real estate and rental prices lower. Another point is the way the government in Japan works. Japan's election system is interesting, it is illegal to donate money to political campaigns, to politicians, or political parties. Anyone can run for office in Japan, you petition the people in your district, and if you get enough signatures, your name is put on the ballot, and the government funds your campaign. All candidates get the identical amount of financial aid and speaking time. This system prevents candidates from making deals or promises in exchange for campaign contributions. An even more interesting point is that unions have no power in private business or government. Politicians cannot buy the votes of union members with taxpayer money. An added benefit to this system is that labor unions do not constantly lobby for ever higher wages while demanding ever lower standards. I live in the most expensive district in Tokyo, some of the homes in this neighborhood cost upwards of $50 million. Yet, there are small apartments in older buildings which can be rented for less than $1000 per month. Basically, Japan's housing is based upon the free market, more desirable places are more expensive, less desirable places are less expensive. Those who can afford better places can find them, those who can afford less expensive places can find them.

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