2 ms·
Based upon the details of this diagram from Wikipedia[0], it appears that there are restrictions on resale. The CLT sets maximum prices for resale (I'd like to
by bufordsharkley 10y ago
Based upon the details of this diagram from Wikipedia[0], it appears that there are restrictions on resale. The CLT sets maximum prices for resale (I'd like to know how), allowing some profit.
In some ways, this appears to be analogous to rent control, except each apartment is replaced by a home.
I see some similar issues, though-- if a CLT becomes extremely attractive, I wouldn't suspect it wouldn't necessarily respond to signals that more housing stock is needed. You could get to the point that there's a scarcity of affordable housing, much as you see with rent control today.
Am I missing something in this analysis?
[0] https://upload.wikimedia.org/wikipedia/commons/5/50/Community_Land_Trusts.png https://upload.wikimedia.org/wikipedia/commons/5/50/Communit...
- refurb 10y agoThanks for digging it up. I agree that a limit on sale price is just like rent control. Creates a ton of distorted incentives in the marketplace.
- bufordsharkley 10y agoI could see it being useful in spreading risk, etc (it could essentially replace the need for zoning laws), but it doesn't really attack the underlying problem. I see it as being compatible with a land value tax (which would align incentives optimally), but not a replacement for it.