The government is not at all interested in fixing this, because it would probably crash the housing market. Which people (both politicians, many of the people who elect them, and perhaps most importantly all of the people who fund their campaigns) think would be a Very Bad Thing.
Seriously, it may be hard for young people to enter the housing market. But no-one wants to go for a solution that leaves the people who do own houses today with mortgages bigger than what their house is worth on the market. You don't help 10% of people by screwing over another 70%.
Seriously, it may be hard for young people to enter the housing market. But no-one wants to go for a solution that leaves the people who do own houses today with mortgages bigger than what their house is worth on the market. You don't help 10% of people by screwing over another 70%.