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> It's still not the bank's fault that people will voluntarily enter unsustainable agreements because they think they need to live in overpriced areas. Difficu
by karatestomp 6y ago
> It's still not the bank's fault that people will voluntarily enter unsustainable agreements because they think they need to live in overpriced areas.
Difficulty: houses are more expensive near good schools, because demand is higher, so you can't get away with cheaper housing without harming your children's future prospects.
And no, it's not mostly a funding thing, so just distributing funds more evenly won't fix it. It has a lot more to do with selection bias, of which housing prices are a major part.
- rrrrrrrrrrrryan 6y agoHousing prices haven't been based on the underlying asset for decades. An expensive home is a place to live and sleep, but it's also: 1) a ticket of admission into a good school district 2) a ticket of admission to a local economy with well-paying jobs 3) a retirement investing account I do think changing the way schools are funded will help the first point, and the rise of remote-work will help with the second point, but as to the third point - who knows. There are too many government incentives to buying a home that I don't think it'll change any time soon.