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The price of all real estate is inflated because of government intervention in the mortgage & finance markets.
by someguydave 10y ago
The price of all real estate is inflated because of government intervention in the mortgage & finance markets.
- tonyedgecombe 10y agoor lack of intervention in the property markets? I don't know about the US but in the UK the only time we built enough housing was when the government got involved after the second world war.
- someguydave 10y agoThat's because both governments heavily regulate land use. I.e. You only building housing on your land with government permission.
- tonyedgecombe 10y agoI'm not sure, the UK has relaxed it's planning laws in recent years but house building seems tied to the general economic cycle and way below what we really need.
- someguydave 10y agoYes but because land is so dear it tends to be the case that only high-end homes get built - ie expensive and low density. The basic problem is that land & housing prices are too high relative to people's wages. I think the reason they are so high is because of government intervention in the finance & housing markets.
- tonyedgecombe 10y agoWhereas I think it's because of lack of government intervention in the finance & housing markets.
- cgag 10y agoWhat? Why would you need more govt intervention to get market to fill such an obvious need?