> The article is going over a paper[0] that asks what would happen to house prices if houses were treated as disposable consumer goods instead of a means of sto

> The article is going over a paper[0] that asks what would happen to house prices if houses were treated as disposable consumer goods instead of a means of storing wealth. What, exactly, do they plan on changing? A house costs a relatively large amount of money to build, and is usually purchased by people without a lot of savings, hence the appearance of mortgages/MBSs. The consequence is that housing becomes a capital good, with an associated yield, and, as with all other capital goods, its price will rise while the long term interest rate is falling, as it has been for the past ~35 years. As far as I can see, there's not much we can do about this, unless we ban mortgages. And I doubt that's going to happen, as younger people really do need a way to finance the purchase of a house with only an income.