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Housing inflation is also exacerbated by low interest rates. I think severe taxes for unoccupied homes is a better solution than bumping rates though, as house

Housing inflation is also exacerbated by low interest rates. I think severe taxes for unoccupied homes is a better solution than bumping rates though, as houses are already completely unaffordable for most and a rate hike just makes that worse for many while not limiting firms that buy in cash.

gruez 5y ago
>I think severe taxes for unoccupied homes is a better solution than bumping rates though Yeah but unoccupied units is only a few % in the hottest housing markets. This makes sense, considering that the opportunity cost of leaving a home empty is higher if the rent is higher. Because of this I'm inclined to believe it's popular-but-ineffective intervention, like banning foreign buyers (which also make up a few % of overall sales)
- CuriouslyC 5y ago
  I'm sure there are a few different segments that could be targeted depending on the area. Housing inflation really does need to be solved without impacting the ability of a median income person to afford a house though. Housing affordability is one of the biggest economic problems of the modern age.
- thedailymail 5y ago
  As with many complex problems, the solution will likely need to include multiple parts. Taxing unoccupied properties and putting limits on who or what can buy residential properties (and how many they can buy) could both be elements of a bigger affordable housing package.
  - mywittyname 5y ago
    A less complicated solution would be to build more housing. Governments weld a lot of power in this respect. They can use eminent domain to acquire land and they have the capability to finance projects on an unrivaled scale. If we want low-cost housing, the government can provide that. Instead, we rely on a market that is designed to optimized for highest cost the market can bare.
vel0city 5y ago
> I think severe taxes for unoccupied homes is a better solution than bumping rates though 99% of homes are not vacant. The vacancy rate of housing is not significantly different from the past, in fact its actually lower than it was a few years ago. While I don't really mind the idea of taxing long-vacant properties to encourage use and discourage pure speculation, I don't think it'll make that much of a different in residential property valuations. https://www.census.gov/housing/hvs/data/histtabs.html https://www.census.gov/housing/hvs/data/histtabs.html

gruez 5y ago

>I think severe taxes for unoccupied homes is a better solution than bumping rates though Yeah but unoccupied units is only a few % in the hottest housing markets. This makes sense, considering that the opportunity cost of leaving a home empty is higher if the rent is higher. Because of this I'm inclined to believe it's popular-but-ineffective intervention, like banning foreign buyers (which also make up a few % of overall sales)

CuriouslyC 5y ago
I'm sure there are a few different segments that could be targeted depending on the area. Housing inflation really does need to be solved without impacting the ability of a median income person to afford a house though. Housing affordability is one of the biggest economic problems of the modern age.
thedailymail 5y ago
As with many complex problems, the solution will likely need to include multiple parts. Taxing unoccupied properties and putting limits on who or what can buy residential properties (and how many they can buy) could both be elements of a bigger affordable housing package.
- mywittyname 5y ago
  A less complicated solution would be to build more housing. Governments weld a lot of power in this respect. They can use eminent domain to acquire land and they have the capability to finance projects on an unrivaled scale. If we want low-cost housing, the government can provide that. Instead, we rely on a market that is designed to optimized for highest cost the market can bare.

vel0city 5y ago

> I think severe taxes for unoccupied homes is a better solution than bumping rates though 99% of homes are not vacant. The vacancy rate of housing is not significantly different from the past, in fact its actually lower than it was a few years ago. While I don't really mind the idea of taxing long-vacant properties to encourage use and discourage pure speculation, I don't think it'll make that much of a different in residential property valuations. https://www.census.gov/housing/hvs/data/histtabs.html https://www.census.gov/housing/hvs/data/histtabs.html