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Sure, no government incentives required. The median home price in the US is $226,000. A typical mortgage payment on that mortgage is $1,100. Adding $1,000/mon
by 11thEarlOfMar 6y ago
Sure, no government incentives required. The median home price in the US is $226,000.
A typical mortgage payment on that mortgage is $1,100.
Adding $1,000/month will put many renters above the minimum income they'd need. Keep in mind, a married couple will be getting $2,000/month.
There will be vacancies for the same reasons. People moving up-market.
Highest end homes will also increase in value. Everybody moves up, and homeless folks who are homeless due to loss of income will have a place to live.
- jonfw 6y agoThe majority of our mortgage market is govt guaranteed at artificially low interest rates (i.e. the US govt is taking losses on the time value of that money)- that was my point. Everybody moves up- meaning more homes being built- so you'd expect this to increase house production in the US, correct? So, despite a disincentive for low payed laborers (like those who do construction) to go to work, the housing market will not just continue, but actually become more productive? That $1100 a month- doesn't include home insurance, doesn't include property taxes, and assumes a $60k down payment, correct? Seems like a charitable number to pick.
- 11thEarlOfMar 6y agoArtificially low interest is not a guarantee. It's an opportunity for the time being. They are already paying rent, and if married, they get $2,000. If their rent is $600, they would have $2,000/month to save a down payment and then have $2,600 to buy a median priced home. That's enough to cover insurance and property taxes. The standard down payment is 20%, so a $226k home would be $45,200.