Kamala's housing plan

I agree in theory, but giving people 25k will only raise prices and demand. This will make it that much harder. And here is why:

 

I think the idea that Airbnb etc is a big contributor is overblown...at least in my market.

MOST airbnb's are not standalone houses that would be on the market. And in our case, ours would be a rental either way. Literally every standalone ABB in a 5 mile radius of mine is privately/locally owned and is not some business entity.

But probably 90% of the ABB's in my region are condo's. (A high tourist area). None of those are "affordable" for ownership as they are mostly on the islands/beaches or in new high rises downtown on the riverfront.

So anything like that while likely being a legal issue to inforce, would also probably just put a drop in the bucket.

 

It won't raise demand. It will help those currently priced out of the market actually be able to afford a house. Demand is high. Supply is high. So what's the issue? Cost. Too many people priced out of the market. Down payment assistance plus potential rate decreases will help fix this issue. And yes, in the end, housing prices will go up. But monthly mortgage payments? They might actually go down a bit.

 

100% agree. Problem is there is little incentive for the builders to do it.

Here the big builders like to "sponsor" builds with us to slap their name on the sign and look like they are doing something.

Another issue is that huge national builders are throwing up houses that are low quality with few amenities but charging high end prices for just big square footage boxes. Those SHOULD be affordable. What was once a starter home for many of us maybe 20 years ago, is now far beyond a young family budget.

 

I am kind of where you are. I am not against policy to spur new housing but I am not sure this is it. My take is the cost will be much more than the benefit. Giving subsidies to first time home buyers as you say just pushes demand up with little impact on supply. A credit to builders makes more sense but I don’t know how much it helps.

Most of her proposals are tax credits thrown here and there that probably won’t do anything other than increasing the deficit. Not great proposals but not as epically stupid as grocery price controls.

 

This is inflationary. This will drive up prices and demand. Simple as that.

 

Wow, so you think the rental market is not tied the purchase prices? That might be an even dumber idea. Perhaps you should watch fewer YouTube videos, as that appears to be your level of understanding.

Let me ask you something that might be beyond your YouTube video: somebody is in the rental market and switches to the housing market as you stated. What happens to the pricing in the rental market? Does the reduction in rental demand increase or decrease rental prices? Then, when that changes, what happens to the price of houses as people try to buy houses to rent to other people? Think for a bit and let me know if that helps is just too far beyond YouTube!

 

Rental market will go down, housing prices will go up. It's called supply and demand. Read up on it and get back to me.

 

Okay, so your view is that the rental market is completely separate from the housing market? People never buy houses to rent them and wouldn't be willing to only pay a lower price when rental prices go down, shifting the demand down?

 

Pay no mind to md. He has never met a Democrat vote buying scheme that he wasn’t willing to contort his brain enough to ignore logic and reasoning to publicly support.

Of course this will increase demand. Soon we may have city showing up to tell us that any demand driven by this policy will be transitory.

To VA’s point, I would increase the VA and FHA interest rate subsidies and eliminate the mandatory PMI. By using these existing programs you can maintain more control. Personally I would tie the interest rate subsidy to a ban on short term rentals.

 

Oh, did you drop by to promise an incoming recession again?

 

Go back and try to find where I ever promised such a thing. I may have noted it as a possibility or probability, but never a promise. The one thing that I did promise was a long term devaluation of the $, which we are well on our way to already.

 

In the long term, we are well on our way to pretty much anything

 

Where did I say that?

 

When you fail to link that decline in the rental markets to demand for housing.

 

You are just making stuff up. Look, I get it. You are BS'ing trying to make it sound like this is a good policy like a good lefty. Too bad anyone with a brain sees it's a joke.

 

Okay, so since you are dodging and weaving posts see if you can answer a few basic questions:

1. Does the shift of housing consumers from rent to owning lower the demand for rental?
2. Is lower demand for rental related to decreased demand for housing from owners with the intent to rent?
3. Is that an offset to increased demand?

Now, we both know that you won't answer because you didn't think this through and thought that housing was like a widgit in Econ 101, but I figured I would ask you the questions directly so that you can obviously dodge them. Have fun.

 

1. Yes
2. Your question doesn't make sense. So try again Skippy.

 

Increasing supply will help lower prices, but inflation and mortgage rates are still crushing sales of existing homes.

We need a change at the top, we need real positive change that does not have Biden nor his sidekick, Kamala Harris.