Subsidies Inflate Housing Demand

When policymakers expand subsidies or use public funds to underwrite consumption (insurance, health premiums, housing vouchers) without simultaneous supply expansion, they mechanically increase demand and raise market prices. Political economies of concentrated beneficiaries (insurers, landlords, climate contractors) make removing these demand‑side levers very difficult, so affordability policy often fails for public‑choice reasons rather than technical ignorance. — Framing affordability as a demand‑inflation problem clarifies that effective reform requires politically credible supply‑side fixes and reforms to subsidy design, not just more spending or symbolic commissions.