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I think ultimately lower levels of home ownership (which implies higher levels of corporate home ownership) will be healthy for housing costs. The sick dynamic
by bradleyjg 7y ago
I think ultimately lower levels of home ownership (which implies higher levels of corporate home ownership) will be healthy for housing costs.
The sick dynamic of governments trying to increase the cost of housing is largely because ownership is so widespread. As much as we like to talk about the political power of deep pocketed corporations, that pales in comparison to the political power of homeowners when they are more than 65% of the population. Bring that number down significantly and we might see a much more reasonable policy environment.
- onion2k 7y agoGovernments want people to own homes because people use them as retirement investments. If everyone rented and didn't save the state welfare costs for old people would be huge.
- bradleyjg 7y agoHome prices cannot grow above the rate of general inflation forever. Trying to indefinitely stretch a model that worked spectacularly well due to the unique circumstances the post-WWII economy will end in tears.