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Not sure how it's down there, but my understanding is even if we have housing crisis, legislations that would actually bring down the housing prices is also bad

by kredd 2y ago

Not sure how it's down there, but my understanding is even if we have housing crisis, legislations that would actually bring down the housing prices is also bad for us. RE market is about 10%+ of the entire GDP, so we want individuals to park their money and use it as an investment vehicle as a part of the consumption cycle. Combine it with "i'll just buy it for my child/spouse/mom/dad" and so on, it's not really that easy to implement either.

t-writescode 2y ago
> legislations that would actually bring down the housing prices is also bad for us Then perhaps we should make a 20 year rollout plan to help us adjust; but, individuals being able to live in a location for a consistent price and other improved social safety nets are a net positive for society and government is supposed to work *for* society as a whole, not just the elites
- kredd 2y ago
  I’m a renter, and I would love that. That being said, majority of people in North America own their homes. Since looking at your property as an investment has been normalized, those voters wouldn’t really like that. Something similar is happening in China, where MoM the average housing is depreciating, and they’re trying hard to balance out the economy with incredible investments into manufacturing and tech. I’m not entirely sure how that would pan out in the west.
  - deleted 2y ago
    [deleted]
JumpCrisscross 2y ago
> RE market is about 10%+ of the entire GDP Source? Construction, commissions, renovations and lending maybe. But all that keeps happening in a constant real-price model.
- kredd 2y ago
  https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610040001&pickMembers%5B0%5D=1.10&cubeTimeFrame.startYear=2019&cubeTimeFrame.endYear=2023&referencePeriods=20190101%2C20230101 https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=361004... “Real estate and rental and leasing” for my province. Construction is separate. It is at 18%+ here, so I just rolled it down to 10 for the country-wide average. Probably much higher than that. This is Canadian numbers though, as I mentioned, I’m not sure how it is down there.
pixelatedindex 2y ago
> RE market is about 10%+ of the entire GDP, so we want individuals to park their money and use it as an investment vehicle as a part of the consumption cycle. Hard no, that’s how we got here. When it’s part of the investment cycle, developers won’t build or build only ones that maximize profits, NIMBYism thrives, and it makes it so that the only people able to buy are the ones who least need it. If you have enough money to buy a __house__ for someone else, then you have enough money to pay much higher taxes. This isn’t like buying a car for someone. Btw, the GDP contribution is about 18% [1] due to price being propped by extensive construction on the supply side. This is by design, and we shouldn’t be encouraging it. [1] https://www.nahb.org/news-and-economics/housing-economics/housings-economic-impact/housings-contribution-to-gross-domestic-product https://www.nahb.org/news-and-economics/housing-economics/ho...
downrightmike 2y ago
If it can be destroyed by the truth, it deserves to be. This is all a farce and it needs to implode.

by kredd 2y ago

t-writescode 2y ago

> legislations that would actually bring down the housing prices is also bad for us Then perhaps we should make a 20 year rollout plan to help us adjust; but, individuals being able to live in a location for a consistent price and other improved social safety nets are a net positive for society and government is supposed to work *for* society as a whole, not just the elites

kredd 2y ago
I’m a renter, and I would love that. That being said, majority of people in North America own their homes. Since looking at your property as an investment has been normalized, those voters wouldn’t really like that. Something similar is happening in China, where MoM the average housing is depreciating, and they’re trying hard to balance out the economy with incredible investments into manufacturing and tech. I’m not entirely sure how that would pan out in the west.
- deleted 2y ago
  [deleted]

JumpCrisscross 2y ago

> RE market is about 10%+ of the entire GDP Source? Construction, commissions, renovations and lending maybe. But all that keeps happening in a constant real-price model.

kredd 2y ago
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610040001&pickMembers%5B0%5D=1.10&cubeTimeFrame.startYear=2019&cubeTimeFrame.endYear=2023&referencePeriods=20190101%2C20230101 https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=361004... “Real estate and rental and leasing” for my province. Construction is separate. It is at 18%+ here, so I just rolled it down to 10 for the country-wide average. Probably much higher than that. This is Canadian numbers though, as I mentioned, I’m not sure how it is down there.

pixelatedindex 2y ago

> RE market is about 10%+ of the entire GDP, so we want individuals to park their money and use it as an investment vehicle as a part of the consumption cycle. Hard no, that’s how we got here. When it’s part of the investment cycle, developers won’t build or build only ones that maximize profits, NIMBYism thrives, and it makes it so that the only people able to buy are the ones who least need it. If you have enough money to buy a __house__ for someone else, then you have enough money to pay much higher taxes. This isn’t like buying a car for someone. Btw, the GDP contribution is about 18% [1] due to price being propped by extensive construction on the supply side. This is by design, and we shouldn’t be encouraging it. [1] https://www.nahb.org/news-and-economics/housing-economics/housings-economic-impact/housings-contribution-to-gross-domestic-product https://www.nahb.org/news-and-economics/housing-economics/ho...

downrightmike 2y ago

If it can be destroyed by the truth, it deserves to be. This is all a farce and it needs to implode.