You think those developers aren’t already expanded?
Here’s an idea.
Close the Dang Border!!
That would helo immediately with housing problems!
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She plans on raising that to about 750,000 homes a year.
Again, none of what she wants will put a dent in housing prices.
Whether we do it by building, (I am NEVER opposed to supply-side solutions) by shooting every investor in the head, or by some other means, solving the housing affordability problem will, by definition, mean lowering home prices back down to their historically normal ratio to incomes.
Either:
housing price crash
- or -
housing price stagnation while they lose their value relative to everything else.
Which do you think is more likely
- The current situation endures forever, the American dream is forever dead, our kids and grandkids will never get the benefits we got from homeownership.
- homes lose roughly 35% of their value
- wages roughly double?
That would only halt the problem in its tracks.
The problem would still be here, it would just stop getting worse.
Closing the border plus jailing and/or deporting the criminal fraudsters OTOH . . .
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Ask the Chinese how that works out for them?
They built a TON of housing off in the hinterland near no jobs industry infrastructure or shopping.
The builders got rich building them, then the builders got rich knocking them down and crying them away.
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Investors bought 1 of every 6 U.S. homes that sold—purchasing $43 billion worth of properties—and 1 of every 4 low-priced homes that sold.
Single-family homes were the most popular property type among investors, making up 69% of their purchases.
Disgusting trend.
Its a sellers market.
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people who want to sell their property being able to sell it is disgusting. An investor coming in an upgrading and updating to create a nice rental is disgusting? There’s a reason these properties don’t get sold to homebuyers. Many need repairs, maintenance, and new appliances that the current owner can’t afford and aren’t worth it for a homebuyer.
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Landlords charge as much rent as the market will bear, regardless of tax deductions.
I expect a market correction, not a crash.
In the early 2000’s people bought homes that had exploding mortgage payments, and when they exceeded people’s ability to pay, they walked away and left banks a ton of homes to sell, hence the fall in property values.
That is not happening this time. People in recent years took out low interest fixed rate mortgages, and only like 8% of people are moving anymore (this is down from a historical 20% rate). Nobody is in danger of foreclosure, so it’s impossible for home values to crash under a flood of foreclosed homes.
I see both wages rising, and home values gradually falling. An old saying, you can’t charge a price higher than the market cannot bear is still true, and will happen over time.
It just needs time.
LOL… you think renters determine rents.
Under Harris’ plan home prices will be going up, not down.
LOL…you think landlords aren’t charging the most they can every day, regardless of taxes.
When Hertz buys more cars to rent, does the price of you and buying a car increase?
Not significantly. Same deal with housing. As long as those homes are not being demolished to build shipping malls or whatever investor activity has only a very small impact on home sale prices.
More importantly
Why do investors buy homes in the first place?
Because they can borrow money cheap (low interest rates)
and they expect home prices and home rents to stay firm and/or rise (inflation aka low interest rates.)
The act government lowering interest rates makes investors’ costs go down and their returns go up. Investor activity is the direct and obvious consequence of big government intervening in the interest markets. If for some reason you don’t want investors to buy properties you should be opining for less government, not less freedom.
According to Statista (and other sources) 20-25% of new vehicles on the road are leased instead of purchased by the driver.
Are those darned leasing companies driving up the price for you or me to buy a car?
Of course not, not substantially.
More to the point:
Why do those dastardly harmful leasing companies even exist?
Answer: Because they can borrow money at low rates (inflationary) and yet each year they can charge more and more each year for leasing and fees (inflation.)
- It is silly to blame leasing companies for high prices.
- It is even sillier to call for more big government in response to something caused by having an overly-large government in the first place.
Hertz doesn’t sell cars in a single auto market.
Investor ownership is concentrated.
yep, sure do. some are, some aren’t. Just got off Zillow looking for my youngest who needs to move. Everything from a one bedroom apartment in a brand new complex for $495 a month to a 3/2 house in a decnt neighborhood for $1300, when the average rents for 2 bedrooms around here range from apartments in the $1400-1700 range and 2 bed houses usually over 1700 and up to 3000
The REITs who’s primary goal is maximizing shareholder value are certainly charging the most they can get regardless of taxes.
Your kid got a steal. Is it REIT owned?
don’t really give a ■■■■■ don’t have to rent from them.
