3 ms·
I get the concern for sure, but is it actually a risk that needs mitigation, or just a concern that needs better information? I haven't conducted a comprehensi
by rainsford 4y ago
I get the concern for sure, but is it actually a risk that needs mitigation, or just a concern that needs better information?
I haven't conducted a comprehensive study, but my general sense is that the value of any given housing unit correlates fairly positively with density. An average sized single family house in the middle of a dense city is generally going to be worth way more than the same house located in an exurb. I'm sure there are counter examples, but I'd be willing to bet that for the most part, the denser the area, the more valuable the housing.
Basic supply and demand might suggest the value of your house would go down the more housing is built in your neighborhood, but that ignores that more housing might create even more demand because the increased population and density makes it a more desirable place to live. And if you own lower density housing from before all that growth, your house can demand a premium for people who want the benefits of density but are able to pay for more space for themselves.
- kiba 4y agoHouses are for living, not to be your piggy bank.
- nonford150 4y agoBut for decades, the US economy has sold SFH as just that. Every time I go to the bank, I get solicited by a bank employee to take out a HELOC.
- UtopiaPunk 4y agoI agree that's how it should be, but unfortunately buying a house is commonly understood to be a great investment strategy. And in this precarious economy with few safety nets, people clutch tightly to their home values. These people also have lots of power within HOAs (a strange and powerful quasi-government structure) and tends to be more influential in local politics. As someone with progressive politics, I believe this is a huge problem.