State must build more houses to make it affordable

I STAND by comments in support of Housing Minister Andrew Kumbakor.
The response by “Ambuge” (The National, Sept 21) to my letter is emotionally misplaced and does not take into account the facts.
My title has nothing to do with my practical rationality.
I am purely and passionately interested in the issues affecting my country.
I gave two options – one, to raise salaries and allowances for all public servants so that housing may be made affordable to all.
However, this will cause a major budget blowout and compound the costs considering the government is the biggest employer and taking into account the expensive real estate market.
The second option is to increase the number of houses owned by the state and, thereby, charge public servants lower rental.
This in turn can provide a cushion effect and relief to the housing market made expensive by real estate agents due to limited supply.
The state has sought to focus on the second option.
The government, through the housing ministry, is adamant on housing the families of hardworking government employees and increasing the supply of housing is a crucial step.
Let me give an example.
If the writer is the only one growing mumu bananas in town A and charging K50 per bunch, you can be sure others will grow their own and charge K10 until the price (rental cost) of banana (houses) drops to a more reasonable rate of K10 to K20.
Likewise, it will be better for others (government and developers) to grow more bananas on their own (build more houses).

Dr Lagaip
Port Moresby