An increase in housing costs have made it extremely hard ro rent or buy a property in cities for an affordable price. The essay explores the underlying reasons of this problem, alongside with providing possible ways to solve it or to mitigate the repercussions.
One of the key factors of a rise in prices are the continuous urbanisation, and migration. Nowadays, people tend to leave small towns and villages, looking for a better life in the big cities. This causes a population growth so that the amount of city residents becomes far more than the overall number of residential dwellings in the area. Combined with economic degradation and high inflation in most countries, all of this make the housing costs to soar.
To solve the problem, authorities need to conduct a different economic strategy. They should avoid centralisation, making not only the big cities a good place to live in, but also the smaller ones. To implement it, government needs to fund the development of transport system, construction of a modern and comfortable infrastructure in the regions. For example, if a high-speed train network was constructed near the capital, people would be able to stay in their hometowns despite of working in a bigger city. These actions would make towns more preferable, leading to a significant change in he housing prices.
Furthermore, the government need to monitor the temp of inflation, from time to time defining more suitable strategy based on the circumstances. Low inflation and interest rates would make it easier for people to pay off the mortgage, which would slower the increase in housing prices.
To sum up, I believe that the key factors of the rising housing costs are urbanisation and economic degradation. To solve this, authorities should develop and beautificate less popular regions as well as provide measures to stop the inflation.