Housing Policy

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Question 5. Find at least three countries or economies that have housing policies or measures to stabilize the housing markets. Provide your views or suggestions on the best measure to stabilize the housing markets that could be considered or used in Melbourne. In 2013, Melbourne’s population was 4.3 million. By the year 2030 Melbourne’s population is set to reach 6 million and by 2051 the population will jump to 7.8 million. With population growth of this magnitude the demand on housing will undoubtedly increase. In 2014, in his opening remarks at the Bundesbank/German Research Foundation/IMF Conference, Mr Min Zhu, Deputy Director of the International Monetary Fund (IMF) stated remarked: “Housing booms have different…show more content…
“ 2. Zoning for housing From page 107. “States should enact legislation similar to the Massachusetts model requiring communities to set aside, or allow, a certain portion of housing units for afford- able housing. Under this model localities can adopt local zoning that encourages rental development in areas the municipality has determined are best suited. If a municipality continues to have exclusionary zoning, then the requirement would be enforced by developers who can override local zoning barriers, with appeals to a state-run zoning board.” Statement by Min Zhu, Deputy Managing Director, IMF Website access on 31st August, 2014 via: http://www.imf.org/external/np/speeches/2014/060514.htm Key message: “Housing booms have different characteristics across countries and time periods. What is common is that when the bust comes, it very often damages financial stability and the real economy. The tools for containing housing booms are still being developed. The evidence on their effectiveness is only just starting to accumulate. The interactions of various policy tools can be complex. But all this should not be an excuse for inaction. The interlocking use of multiple tools might overcome the shortcomings of any single policy tool. We
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