They should. One common problem is that it’s difficult to qualifying eligible buyers for homeownership units. In some cases, this is the result of problems in the initial pricing formula. If units are priced too high for the target income group, buyers who are below the income cutoff may have trouble qualifying for a mortgage. On the other hand, if units are priced too low, they impose a greater cost on developers with no increase in social benefit.
While developers have an obvious interest in advocating for higher prices, units that are slow to sell impact their bottom line. Developers and their sales and marketing partners will often have a much clearer sense than public policymakers about how best to balance these concerns.
