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Are they really? An honest question - suppose the housing does a nosedive to 100K. I still find it hard to believe that those living on the streets in tents wit

by option 7y ago

Are they really? An honest question - suppose the housing does a nosedive to 100K. I still find it hard to believe that those living on the streets in tents with no jobs will rush to buy houses. The other category of “invisible” homeless - those living in cars and at friends places/garages will of course benefit if the average price of the housing drops

Touche 7y ago
You understand rent would also go down too right?
ivanbakel 7y ago
That would be the most naive interpretation of the relationship - what if, for example, the invisible homeless also burden charities and other support systems in a way that leads to more visible homelessness? What if, given that high prices are a sign of lack of supply, visible homelessness is just a symptom of lack of construction in the county? "Suppose the house price drops" is a very non-specific hypothetical. Why would the house price drop, and what impact could that have on homelessness?
deleted 7y ago
[deleted]
michaelbuckbee 7y ago
I think "linked" is probably the right term. It's certainly a spectrum of people with issues (substance abuse, mental health, opportunity, bad luck). A drop in housing prices doesn't immediately fix any of those things, but it unlocks some options. Looking at Zillow, rent of a 1 bedroom unit is around $2000/mo (put another way, that's 100% of the income of a person working at minimum wage), that's just an impossible situation. If housing prices come down, rents come down, the most functional 1/3 of the homeless population gets off the street, resources can be applied to the more difficult cases, etc.
Fauntleroy 7y ago
Obviously people with no real income will not be rushing out to buy houses... however, lowering home prices would help prevent people from becoming homeless in the first place. If you only have to manage to pay for a $100,000 home, it's going to be much easier to keep those payments up. For those already homeless, special assistance will be required to get them back into "moneyed" society. However, a lower entry point to homeownership would make this assistance less costly.
jimhefferon 7y ago
> Are they really? An honest question Not an economist. But many of us perceive that in the US today the middle class is contracting. A few people from that class may migrate to the upper class-- good for them-- but probably the overwhelming majority of folks migrate downwards. So if OP means that in a context where there is a lot of quite expensive real estate you would expect also to find a good number of people who are so marginalized that they are living in their cars or on the streets, then yes, they are linked.
triceratops 7y ago
If housing prices nosedive, so does rent. Not everyone in a tent encampment needs to be a buyer.
- option 7y ago
  I’d say my point still applies, perhaps with a smaller degree. If rents drop 3x (an economic disaster pretty much) are tent encampment inhabitants rushing to rent, coming up with deposits and getting pre-approved?
  - 34679 7y ago
    You keep using that word "rushing" but there's no solution that I'm aware of that would cause hordes of homeless to rush towards housing. What we can do is judge whether a policy helps or hurts. Higher housing costs causes more homelessness. Period.
  - triceratops 7y ago
    > If rents drop 3x (an economic disaster pretty much) are tent encampment inhabitants rushing to rent, coming up with deposits and getting pre-approved? If we're dealing in hypotheticals, why do you seem to be asserting that they would not do so? If they can hold down some sort of job, and they can afford the lower rent why wouldn't they go for a real roof over their head? Or are you saying that campers simply don't want that? I have no idea what you're on about with these questions...

by option 7y ago

Touche 7y ago

You understand rent would also go down too right?

ivanbakel 7y ago

That would be the most naive interpretation of the relationship - what if, for example, the invisible homeless also burden charities and other support systems in a way that leads to more visible homelessness? What if, given that high prices are a sign of lack of supply, visible homelessness is just a symptom of lack of construction in the county? "Suppose the house price drops" is a very non-specific hypothetical. Why would the house price drop, and what impact could that have on homelessness?

deleted 7y ago

[deleted]

michaelbuckbee 7y ago

I think "linked" is probably the right term. It's certainly a spectrum of people with issues (substance abuse, mental health, opportunity, bad luck). A drop in housing prices doesn't immediately fix any of those things, but it unlocks some options. Looking at Zillow, rent of a 1 bedroom unit is around $2000/mo (put another way, that's 100% of the income of a person working at minimum wage), that's just an impossible situation. If housing prices come down, rents come down, the most functional 1/3 of the homeless population gets off the street, resources can be applied to the more difficult cases, etc.

Fauntleroy 7y ago

Obviously people with no real income will not be rushing out to buy houses... however, lowering home prices would help prevent people from becoming homeless in the first place. If you only have to manage to pay for a $100,000 home, it's going to be much easier to keep those payments up. For those already homeless, special assistance will be required to get them back into "moneyed" society. However, a lower entry point to homeownership would make this assistance less costly.

jimhefferon 7y ago

> Are they really? An honest question Not an economist. But many of us perceive that in the US today the middle class is contracting. A few people from that class may migrate to the upper class-- good for them-- but probably the overwhelming majority of folks migrate downwards. So if OP means that in a context where there is a lot of quite expensive real estate you would expect also to find a good number of people who are so marginalized that they are living in their cars or on the streets, then yes, they are linked.

triceratops 7y ago

If housing prices nosedive, so does rent. Not everyone in a tent encampment needs to be a buyer.

option 7y ago
I’d say my point still applies, perhaps with a smaller degree. If rents drop 3x (an economic disaster pretty much) are tent encampment inhabitants rushing to rent, coming up with deposits and getting pre-approved?
- 34679 7y ago
  You keep using that word "rushing" but there's no solution that I'm aware of that would cause hordes of homeless to rush towards housing. What we can do is judge whether a policy helps or hurts. Higher housing costs causes more homelessness. Period.
- triceratops 7y ago
  > If rents drop 3x (an economic disaster pretty much) are tent encampment inhabitants rushing to rent, coming up with deposits and getting pre-approved? If we're dealing in hypotheticals, why do you seem to be asserting that they would not do so? If they can hold down some sort of job, and they can afford the lower rent why wouldn't they go for a real roof over their head? Or are you saying that campers simply don't want that? I have no idea what you're on about with these questions...