The purposes of housing policy: Counteracting housing market malfunctions?

Housing policies have been designed very differently from country to country and the perception of them has varied among economists. A major reason for this might be that the fundamental purposes of housing policies are unclear. They have been introduced to counter actual problems in the housing market like housing shortage and problems with affordability, but it has not been entirely clear why the market has not been able by itself to provide a satisfactory and affordable housing supply. This article discusses, based on a review of the research literature, malfunctions of the market, which could justify public interventions.