Re: Economists solving the problems the last one caused @ LucreLout
"Stuck for how long? 25 years. So phase in the change over 30 years. Problem solved."
Except that it isn't solved.
Any change you telegraph over any timescale you choose has an impact starting the moment you announce it. See Gordon Brown and what will forever be known in the gold markets as "The Brown Bottom".
Nobody will pay a 10, 20, or 30 year mortgage to get to the end of it and watch the state take half their house value. Everyone would look to downsize now or default on the mortgage.
If you want to reduce the value over time, then you need to build enough to slow increases below the rate of inflation while telling nobody what the plan is... the problem is, we don't build even half the houses needed to achieve that.
Prices can come down in real terms, without harming existing value, if you cut taxation. That would require significant real cuts to the public sector to fund it. Real as in the sense that your budget this year is X and next year it is 3/4 X. Again, not a vote winner.
The simple fact is that the young prospective FTBs are going to have to make a hard choice, and right & wrong, morality, and ethics don't come into it.
Option 1) If you want to live in the same sort of house in which you grew up, in the same sort of area, then you will have to work a lot longer than your parents to fund that.
Option 2) Emigrate to somewhere with cheaper housing.
Option 3) Buy a significantly smaller house or flat than you expect.
For that list of choices, the Baby Boomers should feel everlasting shame, for it is they, not Gen X, that created the mess to their own advantage.
Daydreaming of taking housing value from those that have it by state sanctioned theft, to give it to those that don't have it, is just that, daydreaming. Half priced houses aren't coming... if they did, you'd get outbid by prospective or existing landlords.