4 ms·

THe last time this actually happened, during the Great Bubble of the early 2000s, developers built as fast as they could sell, to anyone who could sign a a pape

THe last time this actually happened, during the Great Bubble of the early 2000s, developers built as fast as they could sell, to anyone who could sign a a paper. It didn't matter if anyone intended to actually live in the buildings. Whole developments were built to stand empty. And when the bubble popped, indeed, prices crashed. Also, stock markets, banks, jobs, income. Foreclosures clogged the market. Corporate real-estate trusts hoovered up the excess housing to convert to rentals. They have not been exemplary landlords in the main. Have the poor benefited in any way from any of this? No, of course not.

deleted 6y ago
[deleted]
shuckles 6y ago
This presumes home building rates in the lead up to the GFC were unusually high, when in fact they were at a 50 year low: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3569920 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3569920
- jeffbee 6y ago
  What's scary is we now have whole entire generations of Americans who have never personally witnessed a functioning housing market, and this is the kind of junk they believe.
- Finnucane 6y ago
  https://www.census.gov/construction/nrc/historical_data/index.html https://www.census.gov/construction/nrc/historical_data/inde...
  - jeffbee 6y ago
    This data at FRED is much easier to work with. As you should be able to see, there was nothing exceptionally high about new housing construction in the first part of the 2000s. https://fred.stlouisfed.org/graph/?g=AA2Q https://fred.stlouisfed.org/graph/?g=AA2Q
    - Finnucane 6y ago
      Then where is the exceptional demand going to come from to execute the proposed scheme?
fingerlocks 6y ago
> Have the poor benefited in any way from any of this? Yeah, I lived in a sweet condo in downtown Seattle for a few hundreds bucks a month in rent during the early 00’s crash. Being a poor college student at the time, and I’d say the price collapse was awesome, esp compared to dorms or other dilapidated UW housing.

deleted 6y ago

[deleted]

shuckles 6y ago

This presumes home building rates in the lead up to the GFC were unusually high, when in fact they were at a 50 year low: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3569920 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3569920

jeffbee 6y ago
What's scary is we now have whole entire generations of Americans who have never personally witnessed a functioning housing market, and this is the kind of junk they believe.
Finnucane 6y ago
https://www.census.gov/construction/nrc/historical_data/index.html https://www.census.gov/construction/nrc/historical_data/inde...
- jeffbee 6y ago
  This data at FRED is much easier to work with. As you should be able to see, there was nothing exceptionally high about new housing construction in the first part of the 2000s. https://fred.stlouisfed.org/graph/?g=AA2Q https://fred.stlouisfed.org/graph/?g=AA2Q
  - Finnucane 6y ago
    Then where is the exceptional demand going to come from to execute the proposed scheme?

fingerlocks 6y ago

> Have the poor benefited in any way from any of this? Yeah, I lived in a sweet condo in downtown Seattle for a few hundreds bucks a month in rent during the early 00’s crash. Being a poor college student at the time, and I’d say the price collapse was awesome, esp compared to dorms or other dilapidated UW housing.