Answer in Macroeconomics for Zalikha #198035

c) In a new diagram, show the situation of property overhang as mentioned in paragraph 3 in the article. Also show how efforts by developers to limit units offered may avoid future overhang.

“Solution”

Property overhang, shows the units build and are complete. For developers to avoid future property overhang then they need to consider some of the factors below;

  • They should improve accessibility and affordability of the units they are selling
  • Also, the should strengthen institutional capability for the national housing policy i.e to ensure that the market is not flooded with unworthy houses
  • They should build in cohesive neighborhoods
  • Also improve coordination between housing development and transportation to increase accessibility.