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I'd say a house costs more than almost anyone has; it's why people need to take out loans to purchase them. That said, without a rental market the price of hous
by ameister14 4y ago
I'd say a house costs more than almost anyone has; it's why people need to take out loans to purchase them. That said, without a rental market the price of houses goes way down. As a result, the people that cannot afford houses then are mostly the same people that cannot currently afford rent. This is because the mortgage payment and insurance for a home is actually lower than the monthly rent. If the top value were lower, it would be a safer risk for a bank but because it's so high, people don't have that access to credit.
A developer still has a profit incentive; mostly the same one they have now, actually. They sell the apartments.
- carom 4y agoSo you have a city like Los Angeles or NYC. You convert all housing to single family homes. Can more people of fewer people live there now?
- ameister14 4y agoWhy would you convert all housing to single family homes? Do people not own apartments for some reason?
- carom 4y ago>That said, without a rental market the price of houses goes way down. I see that you are saying you would simply sell the apartments instead now. What is the solution for (e.g.) new grads who do not have a down payment yet? Why aren't tenants currently pooling their money, purchasing the properties they live at and converting it to a Tenancy in Common? I do not think prices will drop without a rental market. Prices might even increase because you are making the market much less efficient. It will also make building new units more difficult as there will almost always be a holdout in the building.