Housing costs can be solved without massive social transfer payments simply by eliminating all income and consumption taxes and switching to a land value tax in order to pay for public services.

If UBI transfer payments are paid out of a consumption or income tax, then landholders and mortgage companies will simply be able to charge all residents higher rent. If residents experience an increase in housing costs associated with savings which must be put away for purchases, rent, and mortgage payments that is in proportion to the increase income they receive via UBI, then UBI will not have made them better off. UBI will only have redistributed money from workers and entrepreneurs to landholders and banks invested in mortgages.

Under a land value tax, landholders cannot charge higher rent due to an increase in land values brought on by public spending on public services. If they want to increase their profits, they have to invest in real property improvements, such as by expanding the stock of available housing. If UBI is paid out of taxes on labor rather than taxes on land, they will be able to charge higher rent.