>The supply of housing on the other hand is an entirely political issue
This is a very California/metropolitan-centric view.
Where I live, permits are "required" but very nearly unenforced. But it's still hard to get anything built because labour and materials.
If the "political" taps were opened tomorrow, this would be revealed in no time. It's not like we have thousands of construction workers sitting around doing nothing.
The construction sector is quite flexible and accustomed to operate in boom-boost cycles. It also has quite productive jobs that are resistant to automation, with roughly half of the cost going directly to labor. That's to say: if substantial demand manifests, the construction sector has historically shown the ability to pay good wages and attract labor from other sectors and then quickly train them.
This is one of the fundamental features of traditional methods that most "construction disruptors" fail to appreciate: they are simple enough and can be done with hand tools by high-school dropouts, because the industry is forced to operate lean and can't burden itself long term with substantial fixed capital, inventory or facilities.
Regarding the unenforced permitting in your location: can I build high density European-style terraced houses, sell them to minority owners and other undesirables, and not expect the local NIMBYs to throw the law book at me? Because selective enforcement is the most toxic form of regulation with the highest risks for investors.
> Where I live, permits are "required" but very nearly unenforced
Depending on where you live and who’s doing the building, I’d wager you could see more enforcement. Things like skin color and socioeconomic standing definitely play into which rules are applied and to whom.
This is a very California/metropolitan-centric view.
Where I live, permits are "required" but very nearly unenforced. But it's still hard to get anything built because labour and materials.
If the "political" taps were opened tomorrow, this would be revealed in no time. It's not like we have thousands of construction workers sitting around doing nothing.