Overinvestment in real estate is a problem for the economy according to a growing body of research that argues it saps future output by sucking capital away from more productive uses. And housing is a particular culprit. (Wall Street Journal)
Governments need to tread very carefully, since property income forms a large portion of middle-class wealth…More adventurous suggestions include a tax on the value of land, to encourage more efficient use and to more reasonably share the uplift in values that owners typically receive through luck alone. But even without such big measures, there are many smaller ways to limit the overinvestment in property currently dragging on productivity.