[everforward]

> American cities could solve their housing shortages in short order but it'd piss off too many people who are "invested' in housing so we accept dead bodies in our streets and social instability instead.

I agree with you about fixing the housing market, but I think you underestimate the instability caused by changing housing prices rapidly.

If housing prices drop by something like 25%, a lot of people are going to be upside down on their loans (outstanding principal exceeds the value of the asset). The banks now have mortgages that aren’t fully secured anymore, and borrowers are heavily incentivized to allow a foreclosure unless they’ve paid down the principal by a lot.

We’re talking the 08 recession all over again.