4 ms·
To consider houses as a basic human need and not as a (good) investment. In theory an huge increment in supply should balance the market. The problem is that i
by galfarragem 4y ago
To consider houses as a basic human need and not as a (good) investment.
In theory an huge increment in supply should balance the market. The problem is that in practice, you can't increase supply enough to "fix" it. Houses are a safe investment, so when they devalue, they are bought right away.
E.g: Portugal is one of the countries in Europe with more houses per inhabitant but the housing market for locals was completely wrecked by Airbnb and foreign buyers (good climate and cheap prices). And I say this as a centrist or even leaning right.
- endisneigh 4y agoOk, what’s your solution, exactly? When there’s a food shortage, you subsidize food, which is exactly what virtually all governments do. When there’s a housing shortage, I guess not building is somehow the solution?
- galfarragem 4y agoEmpirically: - Limit ownership to residents. - Limit the amount of houses per person. Max. of 2? - Limit airbnb outside touristic areas. Stuff that doesn't work: subsidize houses or limit rents.
- endisneigh 4y agoAfter you do all of that what happens if people still want to buy? Migrants come in, people are born? Homelessness I guess? Why have a max of two? Seems arbitrary, why not one?
- galfarragem 4y ago> Why have a max of two? Seems arbitrary, why not one? Finding the sweet spot implies trial end error. It's certainly not 1 and I suspect 2 is too restrictive unnecessarily. The relevant is to restrain housing from being a financial instrument not to repress people. If a person can't buy a dozen houses the demand (and consequently the price) will fall.
- endisneigh 4y ago1. You can’t be in two places simultaneously - there’s no reason to own more than one house per person. 2. If no one can own multiple houses, then rentals cannot exist. Where do those who cannot afford to buy live?
- orwin 4y ago> After you do all of that what happens if people still want to buy? Migrants come in, people are born? Homelessness I guess? Easy, local government pay for new developpements according to their needs, and rent them at 1/20th of their cost (per year, a bit more to account for losses maybe) for at least 10 year, after which the familly/homeowner can buy the rest of the house.
- endisneigh 4y agoWhere does the government get the money to do this?