Pakistan has a growing population and a shortage of houses. The Government does not have the funds or capacity to build so many houses, while the private sector or armed forces sector has not been able to build quickly or reduce the cost of housing over the past many years.
During World War 2, the USA faced a shortage of 3.5 Million homes and faced a similar situation. Their Government during President Truman’s time addressed the problem in a low-cost way that got them great results. Pakistan can copy that action to help increase housing in Pakistan as well.
President Truman’s Government passed a law that fixed the highest rent of a property at £80 per month, which is equivalent to £1000 in today’s terms. They also fixed the highest price of new homes at £10,000 or £134,000 in today’s terms.
Because it became a crime to buy or rent homes at higher prices than set by the Government, the private sector could not sell expensive houses and had to rely on selling a higher number of houses to make a profit. People started constructing cheap, affordable, and similar houses, helping reduce construction costs. While people and companies also stopped investing in properties and instead invested in businesses, helping create many jobs and economic activities for the country.
If Pakistan creates a database of all properties, fix the prices of the properties to an average, also fix the price of all new properties that will be developed, stop yearly increases in the value of owned property, fix the price of rents, and allow citizens to access the database to see the actual set price of each property.
Then Pakistan will see a reduction in property scams, an increase in affordable housing, an end to family disputes on property, while wealth invested in property will be moved into sectors that create economic opportunities. Many evils and unnecessary work will disappear from Pakistan.
SHAHRYAR KHAN BASEER
ISLAMABAD
