3 ms·
This seems like a bad idea (gut check). Won't the availability of public money for private housing help to drive prices up? Everything I see seems to indicate
by alexc05 10y ago
This seems like a bad idea (gut check). Won't the availability of public money for private housing help to drive prices up?
Everything I see seems to indicate that the price of housing expands to fill the amount of money available.
Cheap interest rates managed to change the base price of homes such that the mortgage payment is roughly the same. Now it is individuals & condo developers collecting that difference rather than banks.
Or am I totally off base here?
Increasing property taxes shifts the burden of ownership to the people who have money... though suppose that would get passed through to renters as well.
- calpaterson 10y ago> Everything I see seems to indicate that the price of housing expands to fill the amount of money available. This applies to many many other areas too. The price of anything in short supply expands as far as possible to change consumer surplus into producer surplus. If it were apple juice in short supply more people would start selling apple juice and eventually the price would fall. Presumably in Palo Alto you can't just throw up more flats/houses in 6 months and put them up for sale though