Oversimplification in housing analysis, with reference to land markets and mobility

Market empowerment is an important means toward better urban housing conditions but is not a universal solution to housing problems. Policy should not blindly aim at a progressive phasing out of government intervention because problems that markets cannot solve at all are likely to gain, not lose importance in the course of development. The complexity of housing and urban communities naturally leads to a number of such environmental, social, and equity problems. Land availability is particularly difficult. The Philippine case, among others, suggests that government intervention may also be needed early in the course of development to ensure that the right kind of market develops. Forward-looking, creative buying, selling, investing, and contracting are not a bottled up resource that just has to be uncorked. Markets have to be nurtured and guided in very specific and adapted ways. Simplifying housing analysis for developing countries has often led to the omissions and distortions that retard progress.