I fixed housing prices by moving to a place that was completely deregulated then building a shack for $60k. Deregulate and you can make things very cheap even with barely building anything, because the replacement cost to build another livable house is far lower, so now current home owners are bidding against cheap competition.
Completely not true and in fact dangerously (willfully?) misleading.
Housing is much more complicated than supply and demand - for a start houses are not fungible. Local conditions are extremely important.
A lot of high house prices is due to financial engineering - for example long mortgage periods at low interest rates. Just one of many mechanisms to make the rich richer by making the poor poorer. Any momentary affordability benefit is soaked up by higher prices, and those mortgages have to be paid off for longer with much higher total payments.
High house prices are also caused by demand elasticity - things like AirBnB, 2nd, 3rd, 4th homes for the super rich, and housing as a place to park funny money (regardless of whether the house is actually being used to home people) mean that normal people can't compete with this non-home demand.
Correct me if I'm wrong, but if interest rates went up 10% tomorrow, housing prices would have to come down if people wanted to actually sell their homes.
They managed to nearly kill inflation without sending the economy into a recession. Housing prices were also slowing though tariffs and increased construction costs are not helping.
Workaccount2|5 months ago
There are only two ways (yes, it's a real life binary system) to lower housing prices.
1.) Build more housing
2.) Make an area less desirable to live in.
That's it. There is nothing else besides those two.
mothballed|5 months ago
somewhereoutth|5 months ago
Housing is much more complicated than supply and demand - for a start houses are not fungible. Local conditions are extremely important.
A lot of high house prices is due to financial engineering - for example long mortgage periods at low interest rates. Just one of many mechanisms to make the rich richer by making the poor poorer. Any momentary affordability benefit is soaked up by higher prices, and those mortgages have to be paid off for longer with much higher total payments.
High house prices are also caused by demand elasticity - things like AirBnB, 2nd, 3rd, 4th homes for the super rich, and housing as a place to park funny money (regardless of whether the house is actually being used to home people) mean that normal people can't compete with this non-home demand.
We could go on.
myrmidon|5 months ago
There are lots of approaches that go that route, like decreasing wealth inequality or suitable taxation.
dgfitz|5 months ago
unknown|5 months ago
[deleted]
matwood|5 months ago