13 ms·

renters already paying as much as they can be squeezed to pay. Raising prop taxes will push inventory to the market which will become primary residency.

seanmcdirmid 2y ago
It will make life hell for anyone who can’t afford to buy their own house yet. It will also make labor markets less fluid because they are now stuck to their house and can’t take much advantage of flexibility. We might as well implement a Chinese style hukou system while we are at it.
- riku_iki 2y ago
  I don't understand why do you think so, more cheaper inventory on the market will move things in exactly opposite direction to what you described.
  - seanmcdirmid 2y ago
    No it won’t! Ok, so you’ve gone and made rental housing economically unviable and only homeowners can have housing (everyone else is just homeless I guess). While you’ve made home ownership more feasible, you haven’t really made it feasible for a 19 year old working at McDonalds, or some guy stuck in a crap job in Mississippi who really should move to a better area with the more expensive housing to find a more suitable job (but they can’t since they own their house and they have to sell their house before they move and then be homeless for a while to accumulate more money to buy in that new area). I lived in lots of places for a couple of years or less to take advantage of short term opportunities. You just made those impossible, since there is a lot of overhead in buying and selling a house, and you don’t do that if you are just in a place for two years.
    - riku_iki 2y ago
      > you’ve gone and made rental housing economically unviable no, there are different slices here, tons of rentals are hyper-profitable now(acquired on much cheaper and with lower interest rates), they will still exist. > you haven’t really made it feasible for a 19 year old working at McDonalds, or some guy stuck in a crap job in Mississippi the point is that there will be cheap inventory for them too. Once real estate stopped being attractive investment vehicle, there will be huge outflow of capital which will crash prices, and this will actually put huge pressure on rental prices too.
      - seanmcdirmid 2y ago
        Even if you get rid of all rental housing, the housing market will crash sure, but the labor market will crash at the same time. So that doesn’t help so much in the short term. Ok, when the labor market comes back, we still have N houses but not everyone can afford those houses, the bank holds them and eventually they fall apart due to maintenance issues (why buffalo NY has a housing shortage even though it has half the population it used to). So maybe we can solve them by just giving the houses away to people, I guess? Can they afford to maintain them? Since the market is inflexible, why should anyone build new ones?

seanmcdirmid 2y ago

It will make life hell for anyone who can’t afford to buy their own house yet. It will also make labor markets less fluid because they are now stuck to their house and can’t take much advantage of flexibility. We might as well implement a Chinese style hukou system while we are at it.

riku_iki 2y ago
I don't understand why do you think so, more cheaper inventory on the market will move things in exactly opposite direction to what you described.
- seanmcdirmid 2y ago
  No it won’t! Ok, so you’ve gone and made rental housing economically unviable and only homeowners can have housing (everyone else is just homeless I guess). While you’ve made home ownership more feasible, you haven’t really made it feasible for a 19 year old working at McDonalds, or some guy stuck in a crap job in Mississippi who really should move to a better area with the more expensive housing to find a more suitable job (but they can’t since they own their house and they have to sell their house before they move and then be homeless for a while to accumulate more money to buy in that new area). I lived in lots of places for a couple of years or less to take advantage of short term opportunities. You just made those impossible, since there is a lot of overhead in buying and selling a house, and you don’t do that if you are just in a place for two years.
  - riku_iki 2y ago
    > you’ve gone and made rental housing economically unviable no, there are different slices here, tons of rentals are hyper-profitable now(acquired on much cheaper and with lower interest rates), they will still exist. > you haven’t really made it feasible for a 19 year old working at McDonalds, or some guy stuck in a crap job in Mississippi the point is that there will be cheap inventory for them too. Once real estate stopped being attractive investment vehicle, there will be huge outflow of capital which will crash prices, and this will actually put huge pressure on rental prices too.
    - seanmcdirmid 2y ago
      Even if you get rid of all rental housing, the housing market will crash sure, but the labor market will crash at the same time. So that doesn’t help so much in the short term. Ok, when the labor market comes back, we still have N houses but not everyone can afford those houses, the bank holds them and eventually they fall apart due to maintenance issues (why buffalo NY has a housing shortage even though it has half the population it used to). So maybe we can solve them by just giving the houses away to people, I guess? Can they afford to maintain them? Since the market is inflexible, why should anyone build new ones?