Kamala's housing plan

Yeah, because it is so difficult to form a US-based entity. Capital doesn't have countries.

 

I get your point and somewhat agree on this offset between renters and owners, but you are neglecting that there is some number of young professionals living at home with parents and this could likely move some of them off the sidelines. So there would be at least some new demand created which would be inflationary to housing.

 

LOL. So that long winded answer is "probably not". Can't believe anyone would think giving 25k to new home buyers won't increase demand and subsequently then raise prices. Econ 101.

 

Some of us went beyond 101. Increases in demand happen only when people choose to consume a product that they didn't previously consume for the same price.

 

I see your point there, but I would counter that this results in older people with children staying in larger housing that they wouldn't need if their kids hit the housing market. Ultimately, the effect of that would be relatively minimal, especially when combined with some supply-side measures.

 

Just an fyi the housing supply right now is the highest it's been since 2008.

 

This is awesome. Your contention is that giving people 25k won't increase demand and raise prices. I want to think you are just trolling but I've seen enough of your posts to know you actually believe this crap. So funny.

 

It's the Student Loan Forgiveness Program all over again. It won't pass congress, she knows it and doesn't care, she is simply trying to buy votes from first time homebuyers who are gullible enough to believe this nonsense.

 

This part in particular. How many homes have been taken out of the supply equation because they're investment/rental properties? Thought I read that Airbnb has 7 million listings in the US.

 

Other than environmental issues (which typically happen in early land development or land acquisition phase), most building restrictions are local. Permitting is local. Building codes are local. Fees and taxes related to home construction are local. Traffic study/mitigation is local.

Not sure how much the feds can realistically move the needle. Esp in places that are landlocked. I’m sure there are major projects that could be built currently tied up in environmental lawsuits, there are also places that never should have been built due to fire or flood risk. But the projects I see major homebuilders do to seem to keep getting bigger and bigger. So I don’t see DeReGuLaTiOn of housing as a serious argument. I’m not in favor of the $25,000 credit either - for the record.

 

There are Habitat affiliates ready to build houses but they are short funds.

Our affiliate has an amazing fundraising strategy/team and has really tapped into all available government aid. Even at that our build/repair rate is less than 100 units per year. With only about 30 of those being new single family homes per year. Its a drop in a large ocean.

If the government was more targeted with the funding, organizations like mine could build more (actual) low income homes. Homes that build wealth and help people begin the journey that their previous circumstances would have never allowed.

We would build as many as we can pay for. No shortage of labor here and our construction team is amazing.

A blanket 25k for first time home buyers isnt really the fix in my opinion

 

We’re getting closer to the ideal housing market supply. Currently it’s just over 4 months and ideally it would about 6 months. A reduction in interest rates next month will probably reverse the trend. That being said I know a lot of home builders have land ready to build on so that will help to some degree.

 

Haha, you think that there are tons of people that are homeless who just need $25k to buy a house.

 

I’d love to know, precisely, what regulatory hurdles you think need to be removed.

 

That's your answer? LOL. This is awesome. All the people renting right now who would love to be able to afford a house will now try to buy houses that they couldn't afford before with this 25k and then like clockwork prices and demand will rise. Again, if you don't understand maybe watch a youtube video on the subject.

 

It doesn’t even have to be “habitat for humanity”, the major builders are fully capable of building affordable housing.

I know part of the concessions/mitigations they sometimes have to do for major development (usually with a county) is to build a certain # of affordable units. So if they are building a gated community with more expensive homes, maybe they have a section of less expensive townhomes at the front or just outside the gate. The idea is that younger police and teachers could afford the starter homes, and from what I’ve seen they have the exact sort of restrictions you describe to discourage flippers and investors from those units which might technically be sold below market value.

From what I know almost all of those deals are negotiated with the county, I wouldn’t want the federal govt getting into any of those details, except maybe offering incentives to encourage more of that type of affordable housing.

 

When I was seven years old my parents bought our home thanks to a government subsidized VA mortgage. In fact the overwhelming majority of homes purchased during the great housing boom of the 1950s were purchased with government subsidized/guaranteed/insured VA or FHA mortgages. Government intervention in the housing market on behalf or working class or middle class homeowners is nothing new.

 

Supply isn't the issue. It's affordability. Too many people can't afford to purchase a house. Down payment is part of the issue. So is monthly payments. FHA is a great program, but with the mortgage insurance, it does raise the mortgage costs. $25k down will allow first time purchasers to get a conventional loan without the MIP added on.

As far as pricing goes, in areas of higher demand, prices have been falling. Like I said in another thread, in my area of metro Phoenix (Gilbert), prices have dropped about 4% YOY. People want to buy, but can't afford current prices. So sellers drop the price. And usually, the sellers can do so and still get plenty of equity from the sale.

The $25k down payment will likely add value in some areas with lower demand and stabilize prices in areas in high demand. A potential rate drop in Sept will also lower mortgage costs without lowering house values. This along with the $25k will drive prices up, but keep mortgage payments in check.

 

I didn't realize home supply was up so high - again this just points to the fact that people are priced out.
Owning a home and building equity is one of the best ways to build wealth in america - or at least it was for a long time (not sure anymore?)
Trying to get a few hundred thousand more people each year into "starter" homes doesn't seem like such a bad thing to me and it seems a worthy investment of taxpayer funds.
Rising tides lift all boats.