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State Intervention in Housing - Coggle Diagram
State Intervention in Housing
Government financing
government subsidies to landlords and housolds
information disclosure
Government regulation of housing which imposes of limits costs, such as building regulations and rent controls
rent control
price control
interest rates to promote buying
Surplus Income Unit
Has more cash income flow than expenditure on consumption for a period of time.
The surplus is allocated to the financial sector.
Other terms for surplus units are saver, lender, investor, supplier of loanable funds, buyer of securities.
Deficit Income Unit
Has more expenditures on consumption than income during a period of time.
– The deficit unit must borrow in the financial sector to balance cash inflows and outflows.
Other terms for deficit spending unit are borrower, demander of loanable funds, seller of securities
why do we need housing finance
new dwellings
manage costs
RE developers association
labour union model
Who has more say the market or the government
market usually better at predicting
housing finance needs stability and prudence - government
government monitors the saving and investment cycles
On the left side of the figure are the surplus income units with funds to lend.
On the right side are the deficit income units with a need to borrow credit.
Surplus and deficit income units are broken down into three categories: individuals (households), businesses, and governments.
Both surplus and deficit income units exist within each category, but some categories will be dominated by one type. For example, the federal government in USA has once been a deficit income unit.