As housing costs rocket, governments take aim at large investors

HOUSING COSTS across the rich world are rising fast. In America and Australia prices have increased by nearly 20% in the past 12 months, and rents too are on the up. In the past year, prices in New Zealand have shot up at a pace of more than NZ$2,000 ($1,400) a week. Costs in big cities have been going up for years, propelled by a mix of cheap borrowing and a scarcity of new homes. The pandemic has made matters worse; lockdowns boosted demand for larger homes, while labour and materials shortages constrained housing supply. As they try to bring down costs, governments are throwing all sorts of ideas at the problem.One set of policies involves helping first-time buyers and renters, while discouraging other types of prospective homeowners. Spain, for instance, wants to get young people out of their parents’ houses, and is offering them nearly $300 a month for rent. In South Korea, President Moon Jae-in has brought in more than 20 different regulations, including tighter lending rules and punitive taxes on expensive homes.