4 ms·

I think the ease of becoming a landlord was a big part of the problem. Or at least how it started. If middle class households buying rental properties can outbi

I think the ease of becoming a landlord was a big part of the problem. Or at least how it started. If middle class households buying rental properties can outbid lower middle class households trying to buy a home, the lower middle class household will often be stuck renting in the long term. And if it makes financial sense for a middle class household to become a landlord, rich individuals and institutional investors will eventually notice it and outbid them. Market-rate rentals should be the exception, not the norm. Some of them are necessary to house people who have recently moved in the area, especially if they don't expect to stay in the long term. But because market-rate rental units largely displace owner-occupied units, having too many of them is bad for the society.

fc417fc802 2y ago
> outbid lower middle class households trying to buy a home, the lower middle class household will often be stuck renting in the long term. If the market is working properly then additional units will be built until the price begins to drop. If there are buyers at a viable price then you should expect there to be sellers. What you are describing is a lack of liquidity. That shouldn't happen in the typical case unless there is bad policy.
- jltsiren 2y ago
  Bad policy seems to be the typical case. People can't even agree on what is good policy. Expecting them to implement good policy consistently is just unrealistic. Meanwhile, as we wait for the elusive capitalist utopia, there are real-world issues that should be solved. The solutions will likely involve policy changes. Which will likely have both positive and negative outcomes. And the negative outcomes will probably require further policy changes in the future.
  - fc417fc802 2y ago
    > The solutions will likely involve policy changes. We're in agreement. My point was that the issue is due to policy. Landlords aren't the problem. Getting rid of landlords would at best be a tiny bandaid and you'd have to change policy to do it so you might as well just address the root cause.

fc417fc802 2y ago

> outbid lower middle class households trying to buy a home, the lower middle class household will often be stuck renting in the long term. If the market is working properly then additional units will be built until the price begins to drop. If there are buyers at a viable price then you should expect there to be sellers. What you are describing is a lack of liquidity. That shouldn't happen in the typical case unless there is bad policy.

jltsiren 2y ago
Bad policy seems to be the typical case. People can't even agree on what is good policy. Expecting them to implement good policy consistently is just unrealistic. Meanwhile, as we wait for the elusive capitalist utopia, there are real-world issues that should be solved. The solutions will likely involve policy changes. Which will likely have both positive and negative outcomes. And the negative outcomes will probably require further policy changes in the future.
- fc417fc802 2y ago
  > The solutions will likely involve policy changes. We're in agreement. My point was that the issue is due to policy. Landlords aren't the problem. Getting rid of landlords would at best be a tiny bandaid and you'd have to change policy to do it so you might as well just address the root cause.