Should the government use in-kind subsidy or rental subsidy to subsidize the housing market in Hong Kong? Discuss

Generally. public housing is characterized as a supply-oriented housing program; in contrast, the rent certificates and vouchers programs are demand-oriented. Tenants in public housing face a reduced price for a fixed-housing offer relative to the ot her two programs; that is. the program is a kind of price-reduction program On the other hand, the rent certificates and vouchers program participants receive cash assistance; that is. the two programs are a kind of income-transfer program. Nevertheless. the two programs are not identical to the unconstrained income-transfer because their subsidies are tied to housing consumption.

A government should use housing subsidy in Hong Kong as it would help people to find suitable homes to stay. They can cover their rent payments and the same time utilise that money for meeting other consumption expenditure, healthcare and education.