Why Do Prices for Housing in Pakistan Change So Often?
Embracing the New Normal? Housing affordability has become a top priority for policy-makers in emerging market nations. In many countries, rising house prices are putting an unfair strain on the wallets of ordinary families seeking to put food on the table. Even in developed economies, soaring house prices can cause problems for those who cannot afford to buy a property. In some urban areas, high house prices and tight supply have made it difficult for first-time buyers to access affordable housing. However, in other cities, skyrocketing property prices and limited land availability make owning a home almost impossible for the average person. In response to these changing conditions, governments have introduced a variety of measures intended to cool property speculation and rein in high home prices. These include limits on how much a seller can receive for their house, tax benefits that encourage developers to build more housing or subsidise those who do buy properties. Additionally, they may even implement regulations that ensure lenders do not force borrowers into expensive loans or place undue restrictions on when homes may be sold.
How Housing Affordability Checks Out in Pakistan
In emerging market countries, including Pakistan, where house prices have consistently outpaced incomes, affordable housing has been a top priority for government leaders. In recent years, there has been a dramatic increase in the number of cities that have passed zoning laws limiting the height of building projects to mitigate sky-high home prices. Since most people can only afford to buy a small portion of the land on which a house is located, backyard oases that feed into the street become closely observed by the authorities. Furthermore, in many cities, high house prices and tight supply have made it difficult for first-time buyers to access affordable housing. In response, governments have introduced a variety of measures intended to cool property speculation and rein in high home prices. These include limits on how much a seller can receive for their house, tax benefits that encourage developers to build more housing or subsidise those who do buy properties. Additionally, they may even implement regulations that ensure lenders do not force borrowers into expensive loans or place undue restrictions on when homes may be sold.
