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One possible consequence of limiting the market is that it could lower the price of buying real estate. Hopefully, that should make it accessible to younger buy
by bertil 8y ago
One possible consequence of limiting the market is that it could lower the price of buying real estate. Hopefully, that should make it accessible to younger buyers.
- michaelcampbell 8y agoAre there any occurrences of such a price control doing anything but worse unintended consequences?
- bertil 8y agoThere has been similar systems in place in France and Sweden, and probably other European countries. Usually, they are targetting financing system: you can borrow money at a rebated cost if you do not rent it for a period of five to ten years. The intended consequences are more people being able to afford a house and home ownership has increased with most policies that I can think of. There are some consequences: rental contracts are very hard to find in Stockholm for instance, but those hardly seem unintended.
- rocqua 8y agoPeople need housing, this limits renting, which affects the supply of housing. In the end, when supply goes down, it usually doesn't make something more attainable. Thats only a first order approximation, but it seems plausible to me.