"Adjust that so nobody but the wealthy can afford to build a NEW house. We already have it that the poor generally buy used cars (or buy with bad deals, negativ

"Adjust that so nobody but the wealthy can afford to build a NEW house. We already have it that the poor generally buy used cars (or buy with bad deals, negative equity etc...). If there were no loans then there would probably be an eventual housing shortage, but we currently have people over extending themselves just to get in the game." Housing shortages tend to RAISE prices, not lower them. And no, I'm not going to adjust my statement, as it reflects current reality. You adjust your response. "As housing prices fall, your rent will too." There's not much to indicate this would be true. "But I'm in favor of doing as much as possible to eliminate rentals as well." So while I'm busy not being able to buy a house, where do I live? "As an example, look at the housing bubble forming in the bay area. If people had to put down 50 percent of the purchase price, they would not be able to afford todays prices and the prices would come down." That's assuming there aren't people buying those houses.