Inside Hong Kong’s cage homes
Vox・6 minutes read
Hong Kong has the highest cost of living globally due to exorbitant housing prices and high population density, leading residents to live in tiny cage homes. Inefficient land management, government reliance on land sales for revenue, and low tax policies hinder efforts to address the housing crisis through policy and zoning reforms.
Insights
- In Hong Kong, the exorbitant housing prices are driven not just by land scarcity but also by inefficient land management and zoning policies, leading to residents living in extremely small apartments known as cage homes due to the high population density.
- The government's reliance on land sales for revenue, fueled by a low tax policy, hampers efforts to address the housing crisis through policy and zoning reforms, perpetuating the cycle of unaffordable housing in the most expensive place to live globally.
Get key ideas from YouTube videos. It’s free
Recent questions
Why are housing prices in Hong Kong so high?
In Hong Kong, housing prices are exceptionally high due to inefficient land management and zoning policies, rather than land scarcity. The government's ownership of all land, leasing it to developers in auctions, leads to exorbitant prices. This reliance on land sales for revenue, coupled with low tax policies, hinders efforts to address the housing crisis through policy and zoning reforms.
What are cage homes in Hong Kong?
Cage homes in Hong Kong are incredibly small apartments, some no larger than a parking space, where residents are forced to live due to the high population density and exorbitant housing prices. These cramped living spaces are a result of the housing crisis in Hong Kong, with residents facing challenges in finding affordable and adequate housing options.
How much of Hong Kong's land remains undeveloped?
Despite the perception of land scarcity, 75% of Hong Kong's land remains undeveloped. The high housing prices in Hong Kong are not solely due to limited land availability but rather inefficient land management and zoning policies that contribute to the housing crisis in the region.
Who owns all the land in Hong Kong?
The government owns all the land in Hong Kong, leasing it to developers in auctions, which results in exorbitant housing prices. This system of land ownership and leasing contributes significantly to government revenue, as land sales play a crucial role in funding government operations in Hong Kong.
How does Hong Kong's tax policy impact housing prices?
Hong Kong's low tax policy drives government reliance on land sales for revenue, hindering efforts to address the housing crisis through policy and zoning reforms. The emphasis on land sales as a revenue source, coupled with low taxes, creates challenges in implementing effective housing policies to make housing more affordable for residents in Hong Kong.
Related videos
Money & Macro
Economist explains why you can't afford a house anymore
WIRED
Real Estate Expert Answers US Housing Crisis Questions | Tech Support | WIRED
neo
The Densest City on Earth
Cash Jordan
NYC is Creating Homeless People... On Purpose
Steven Van Metre
The Biggest Market Crash Since 2008 Just Hit Asia – Is the U.S. Next?
Summary
00:00
Hong Kong's Housing Crisis: High Prices, Small Spaces
- Hong Kong is the most expensive place to live globally, with housing prices nearly 20 times higher than annual income.
- Residents are forced to live in incredibly small apartments, some no larger than a parking space, known as cage homes, to accommodate the high population density.
- The high prices are not solely due to land scarcity, as 75% of Hong Kong's land remains undeveloped, but rather inefficient land management and zoning policies.
- The government owns all land in Hong Kong, leasing it to developers in auctions, resulting in exorbitant prices, with land sales contributing significantly to government revenue.
- Hong Kong's low tax policy drives government reliance on land sales for revenue, hindering efforts to address the housing crisis through policy and zoning reforms.
