One of the main objections to government intervention is that it would hamper the private sector and simultaneously pose a huge burden upon the state. In countries where the government is on a tight budget and the homeless population is large, the involvement of private property developers is required and recommended. Not only does it release the government from the burden of funding large-sized construction programmes but it also fosters the housing industry. Given its role in attracting public consumption and accelerating economic development, the housing industry should be at the mercy of the market, rather than the government.
Another drawback of state control over the housing market is that it could result in the stagnancy of construction quality, functionality, facilities and other aspects of housing. Apartment blocks or other residential constructions would be built in a similar pattern and the cityscape would be monotonous. Excessive uniformity, especially in the size and number of rooms, will fail to meet comprehensive requirements raised by citizens on properties.
Despite these objections, government intervention is essential in some segments of the market and can render more resistance to citizens. Single parents, the people with disabilities and other disadvantaged people are among those who are not ready to afford commercial housing. The government can provide them either with housing allowance to purchase their private properties or directly with economical houses.
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