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It’s going to be very difficult to make housing more affordable with high interest rates and high inflation. I highly doubt just increasing supply is going to

It’s going to be very difficult to make housing more affordable with high interest rates and high inflation. I highly doubt just increasing supply is going to be enough.

ElectricBoogie 2y ago
Investment banks will just buy up any affordable housing.
- throwaway1105q 2y ago
  That means there is not enough. Housing can't be affordable if a small set of organizations can have it all.
  - kylebenzle 2y ago
    Its just that never before has there been an investment firm large enough to take a big enough share of the largest market in the world, the US housing market.
    - throwaway1105q 2y ago
      They didn't take a large share of US housing, they took a large share of available housing. Several orders of magnitude difference.
  - jkolio 2y ago
    If housing prices drop and a crisis ensues, government/central banks lower interest rates and provide stimulus in the form of grants/loans/monetary expansion to prop them up. It becomes clear that the only way to make housing affordable is for authorities to have the political courage to let a crash happen.
  - ElectricBoogie 2y ago
    [flagged]
- kylebenzle 2y ago
  The moment the federal government (Federal Reserve), private equity and investment firms like BlackRock started buying up every available home not nailed down it was the beginning of the end for the US consumer.
- HDThoreaun 2y ago
  Housing is only a good investment if supply is artificially constrained. If we let people build it banks wont want it
grecy 2y ago
Make a law that only humans can buy residential property, and only one house for one human.
- dgfitz 2y ago
  Talk about increasing the costs of having children…
- wingspar 2y ago
  So only a human buys a large apartment complex, with all the associated liabilities and risks? Does that exclude partnerships or just corps and llcs?
fragmede 2y ago
limitations on what people can buy aren't popular but forcing housing to be owned by local people, who have a stake in the local community, rather than an REIT with investors 5 states away that are only interested in returns, or even an overseas owner. Taxing rental income harshly and the gains from the sale of housing would also contribute to making investment property less attractive, though there are second order effects to consider. still, I think building more really is what's needed, so subsidies for building would be a great way to stimulate building, as well as better funding for city permit departments, and also challenges to more egregious zoning restrictions.

It’s going to be very difficult to make housing more affordable with high interest rates and high inflation. I highly doubt just increasing supply is going to be enough.

ElectricBoogie 2y ago

Investment banks will just buy up any affordable housing.

throwaway1105q 2y ago
That means there is not enough. Housing can't be affordable if a small set of organizations can have it all.
- kylebenzle 2y ago
  Its just that never before has there been an investment firm large enough to take a big enough share of the largest market in the world, the US housing market.
  - throwaway1105q 2y ago
    They didn't take a large share of US housing, they took a large share of available housing. Several orders of magnitude difference.
- jkolio 2y ago
  If housing prices drop and a crisis ensues, government/central banks lower interest rates and provide stimulus in the form of grants/loans/monetary expansion to prop them up. It becomes clear that the only way to make housing affordable is for authorities to have the political courage to let a crash happen.
- ElectricBoogie 2y ago
  [flagged]
kylebenzle 2y ago
The moment the federal government (Federal Reserve), private equity and investment firms like BlackRock started buying up every available home not nailed down it was the beginning of the end for the US consumer.
HDThoreaun 2y ago
Housing is only a good investment if supply is artificially constrained. If we let people build it banks wont want it

grecy 2y ago

Make a law that only humans can buy residential property, and only one house for one human.

dgfitz 2y ago
Talk about increasing the costs of having children…
wingspar 2y ago
So only a human buys a large apartment complex, with all the associated liabilities and risks? Does that exclude partnerships or just corps and llcs?

fragmede 2y ago

limitations on what people can buy aren't popular but forcing housing to be owned by local people, who have a stake in the local community, rather than an REIT with investors 5 states away that are only interested in returns, or even an overseas owner. Taxing rental income harshly and the gains from the sale of housing would also contribute to making investment property less attractive, though there are second order effects to consider. still, I think building more really is what's needed, so subsidies for building would be a great way to stimulate building, as well as better funding for city permit departments, and also challenges to more egregious zoning restrictions.