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It sounds like you have an affirmative theory of what the housing shortage is caused by. If so why not share it?

Areading314 9y ago
As with most shortages the issues are related to supply and demand of (desirable) housing: Supply side: * Zoning restrictions. Many cities are slow to up-zone because their voters enjoy the high prices (nimbyism). * Lack of, or insufficient infrastructure limiting size of desirable areas. * Generally high crime rates in urban areas, due to underfunded police departments and public services, also limits size of desirable areas * Poor education opportunities also contributes to the limited amount of desirable housing, leading to extremes in home values Demand side: * US is the worlds #1 tax haven. Foreign investors buy US real estate as a means of wealth storage and speculation, which increases demand. * Mortgage interest tax deductions for homeowners are essentially a wealth transfer from taxpayers to banks and homeowners. * Artificially low interest rates greatly increase the amount of capital chasing homes. For example a $2000/mo mortgage at 4% finances $420k, but at 6% only finances $333k. (People buying homes right now should think about the implications of this). * Irrational societal obsession with homeownership. * Historical trend of price appreciation has fostered a false impression of home ownership being a good investment, despite the great risks and expenses involved.
- branchless 9y ago
  This is a way more sane post. Also I'd say coming off the gold standard lead to utterly unconstrained fiat issuance.
- sokoloff 9y ago
  > Mortgage interest tax deductions for homeowners are essentially a wealth transfer from taxpayers to banks and homeowners. Are corporate loan interest payment deductions also a transfer from taxpayers to banks and companies? Do you propose disallowing that as well? If you don't, you place corporate landlords at a distinct advantage over individual homeowner consumers. If you do propose eliminating corporate interest deduction, that has huge implications on many industries where borrowing is commonplace (and arguably necessary to start a new venture).
  - pjc50 9y ago
    How about the other way round: allow individuals to deduct every piece of interest from tax?

As with most shortages the issues are related to supply and demand of (desirable) housing: Supply side: * Zoning restrictions. Many cities are slow to up-zone because their voters enjoy the high prices (nimbyism). * Lack of, or insufficient infrastructure limiting size of desirable areas. * Generally high crime rates in urban areas, due to underfunded police departments and public services, also limits size of desirable areas * Poor education opportunities also contributes to the limited amount of desirable housing, leading to extremes in home values Demand side: * US is the worlds #1 tax haven. Foreign investors buy US real estate as a means of wealth storage and speculation, which increases demand. * Mortgage interest tax deductions for homeowners are essentially a wealth transfer from taxpayers to banks and homeowners. * Artificially low interest rates greatly increase the amount of capital chasing homes. For example a $2000/mo mortgage at 4% finances $420k, but at 6% only finances $333k. (People buying homes right now should think about the implications of this). * Irrational societal obsession with homeownership. * Historical trend of price appreciation has fostered a false impression of home ownership being a good investment, despite the great risks and expenses involved.

branchless 9y ago
This is a way more sane post. Also I'd say coming off the gold standard lead to utterly unconstrained fiat issuance.
sokoloff 9y ago
> Mortgage interest tax deductions for homeowners are essentially a wealth transfer from taxpayers to banks and homeowners. Are corporate loan interest payment deductions also a transfer from taxpayers to banks and companies? Do you propose disallowing that as well? If you don't, you place corporate landlords at a distinct advantage over individual homeowner consumers. If you do propose eliminating corporate interest deduction, that has huge implications on many industries where borrowing is commonplace (and arguably necessary to start a new venture).
- pjc50 9y ago
  How about the other way round: allow individuals to deduct every piece of interest from tax?