4 ms·

It makes housing affordable for new homeowners, but if prices drop rapidly existing homeowners can owe more than their home is worth. That's why it's not as si

It makes housing affordable for new homeowners, but if prices drop rapidly existing homeowners can owe more than their home is worth. That's why it's not as simple as "build more affordable housing", not everyone wins if it's done too fast. While we need to provide affordable housing there are reasonable economic / environmental / community reasons why some small towns don't want it in their own backyard.

Red_Leaves_Flyy 7y ago
That's how cars economics work. Homes are depreciating assets. They need expensive repairs and renovations throughout their life. Modern homes are designed to last a few decades. Why are capital holders entitled to guranteed capital returns when their neighbors sleep in excrement on the streets? I see your point, so please don't accuse me of missing it. However comparing an underwater loan to living on the streets is absurd. If the house isn't worth the mortgage file bankruptcy and move on with your life. If you're living on the streets the chances of getting another chance are razor thin. We all should take a hard look at our privilege before we compare the pains of bankruptcy to the immediately life threatening hellscape that is homelessness.
- everdev 7y ago
  Affordable housing and homeless shelters are two different things. I doubt homeless shelters produce this effect on existing home prices. And yes, telling a hard working middle class family with kids to just declare bankruptcy and move on is a big deal and worth examining the impact before you create policies that make that a real possibility.
  - Red_Leaves_Flyy 7y ago
    Sure it's a big deal. They gambled on a house and lost. Homeowners should not be guranteed an roi on a depreciating asset like they are in this economic climate. The housing market is irrational because of speculative investing, predatory renting, rent seeking landowners, nimbys, racist lending, etc. Each of these requires different solutions. Would I feel bad for someone who bought a sfh and went underwater. You betcha. That's life though. Most car loans are underwater from day 1. Should be artificially restrict the number of cars on the road so car owners can sell their worn and breaking down clunker for a profit too? Should we continue to limit this dynamic to scalable profit generating schemes that disproportionately benefit millionaires and billionaires?

Red_Leaves_Flyy 7y ago

That's how cars economics work. Homes are depreciating assets. They need expensive repairs and renovations throughout their life. Modern homes are designed to last a few decades. Why are capital holders entitled to guranteed capital returns when their neighbors sleep in excrement on the streets? I see your point, so please don't accuse me of missing it. However comparing an underwater loan to living on the streets is absurd. If the house isn't worth the mortgage file bankruptcy and move on with your life. If you're living on the streets the chances of getting another chance are razor thin. We all should take a hard look at our privilege before we compare the pains of bankruptcy to the immediately life threatening hellscape that is homelessness.

everdev 7y ago
Affordable housing and homeless shelters are two different things. I doubt homeless shelters produce this effect on existing home prices. And yes, telling a hard working middle class family with kids to just declare bankruptcy and move on is a big deal and worth examining the impact before you create policies that make that a real possibility.
- Red_Leaves_Flyy 7y ago
  Sure it's a big deal. They gambled on a house and lost. Homeowners should not be guranteed an roi on a depreciating asset like they are in this economic climate. The housing market is irrational because of speculative investing, predatory renting, rent seeking landowners, nimbys, racist lending, etc. Each of these requires different solutions. Would I feel bad for someone who bought a sfh and went underwater. You betcha. That's life though. Most car loans are underwater from day 1. Should be artificially restrict the number of cars on the road so car owners can sell their worn and breaking down clunker for a profit too? Should we continue to limit this dynamic to scalable profit generating schemes that disproportionately benefit millionaires and billionaires?