When you’re sitting on a runaway horse, how do you stop it? Here’s parental advice from a Canadian father who attended military college during the dying memories of the Charge Of The Light Brigade. Trainee officers still practised the outdated concept of soldiers fighting in battle upon a horse:
“You yank back hard on the reins, then let them suddenly go. Repeat until the horse thinks, “If I don’t stop running, this idiot on my back is going to kill me!”
This wise observation sensibly slows the horse to an appropriate amble or full stop.
Here’s the question: does this model suit modern government-controlled affordable homebuilding? First inject massive perks into builder pockets until their wild gimme-gimme-profit construction overwhelms buyer’s ability to take purchase. After which, switch to injecting buyer perks into wannabe homeowners, while demanding construction cost-cutting and other builder restraints until they are weeping and screaming ‘bankruptcy!’
Rinse and repeat as needed.
Seems it’s a model that has slowed Chinese house-building successfully. Skittish horses (a.k.a. prospective buyers) are suspiciously eyeing housing opportunities, while waiting to see which way the government’s reins will be jerked — to the disadvantage of builder-profiteers or to prospective house- purchasers.
Read more at Reuters: China’s central bank unveils most aggressive stimulus since pandemic,
China boosts funds for housing projects to support embattled sector, and
China to focus on stabilizing housing market in 2025, housing regulator says
You can also check out this article from Voice of America: Some analysts say China’s plan to boost housing market is ‘too little, too late’
And in your country? Are your homebuyers and/or homebuilders being schooled by the school of runaway horses and their riders?
