Quote:
Originally Posted by Jibartik
[You must be logged in to view images. Log in or Register.]
I am having a hard time understanding the housing market.
I often hear this one response when someone points out that millennials can't afford to buy one:
But.. Am I the only one that is like, wait we're at maximum occupancy here? There are more people than homes can be built? [You must be logged in to view images. Log in or Register.]
Like...
Are we at a lack of supply because we could have many more houses than we have, but we just wont build them?
Or are we at a lack of supply because we're reaching maximum occupancy and no mater how you shake it, we're screwed?
I just seem to think that if we have more demand than we have supply of homes, that it's not a solvable solution.
Do we think that new towns are going to open up in Nebraska and that will solve the housing issue?
I just dont see how supply of homes being a problem can just be fixed. [You must be logged in to view images. Log in or Register.] |
We aren’t at maximum occupancy, shitlords are buying houses and leaving them vacant as an investment. We have more than enough houses to end homelessness but don’t.
The reason we have high demand for new houses is the low interest rate, which is also why we have such crazy high sales prices right now (especially people, poor people...comparatively poor people) because it’s cheaper for Californians working from home to buy a house in Nebraska or Wyoming for 50k+ over asking price than to stay in California. It’s not their taxes that’s pushing them out, it’s the price of land itself. This has led to a housing bubble that once the moratorium ends, will make the 45 million+ delinquent or behind on their mortgages be foreclosed on, causing another market crash. The price of houses will drop, but only people with capital will be scooping them up so they can turn around and rent them out, which means with tons of new renters on the market, rent prices go up, and the poor get poorer with increased rent. Trump fucked the American people hard. All the people who bought a home for over value as well will also be fucked because they won’t be able to refinance once the market crashes.
The housing crisis has been explained to you now.