Can We Make Houses Affordable... Without Destroying the Economy?

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#realestate #housingmarket #money

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Affordable housing has become THE defining challenge of this generation not only in America, but across most of the world.

House prices have grown so much faster than wages that young people will struggle for years JUST to save a down payment, all so they can struggle for DECADES to make the RE-payments on their mortgage. At the same time we are told that our home is our biggest asset, and the last time the real estate market saw a significant dip, it took the global economy down with it.

So can we make houses affordable… without destroying the economy?

According to data from the U.S. Census Bureau the homeownership rate in America is sixty five point six percent [65.5%] so the majority of people have a direct financial interest in not seeing their biggest financial asset lose its value.

This is in SPITE of the fact that according to a study by the CATO institute EIGHTY SEVEN percent [87%] of Americans are worried about the cost of housing which means there is a big overlap between people that want affordable housing… as long as it isn’t theirs. This means the only winning course of action for politicians is to performatively make the problem worse.
Administration has announced plans to offer tax credits of up to $10,000 to families selling their home to another owner occupant in addition to another tax credit of up to $5,000 to offset mortgage rates for first home buyers.

These could be used in conjunction with a TWENTY FIVE THOUSAND DOLLAR [$25,000] bonus for first generation homebuyers.

BUT if you are a new buyer and you get $40,000 worth of extra tax bonuses and grants, all that will do is make affordable housing… $40,000 more expensive which doesn’t really make you any better off overall. So just making houses cheaper isn’t enough to make houses more affordable UNLESS you look at some radical… and not so radical solutions, that won’t be politically popular… but just might work…

So it’s time to learn How Money Works to find out if you can make the houses affordable… without destroying the economy in the process.

[jonathanabgrall]

I don't want my house to be an investment, i don't want my house to be an asset, i don't want my house to be anything finance bros even think about. I just want a goddamn place to live.

[Champstamp]

If basic housing is unaffordable, the economy is already broken

[Greggsberdard]

No financial institution should be allowed to own 40% or more of the single family homes. This recession is paving a way for a monopoly on homes to further rid of the middle class. It would be wise for most Americans to not sell their homes if they're able to.I want to buy houses cheap in 2024 and maybe invest in stocks. When's the best time to buy stocks? Some say they make a lot, others warn the market is risky. Advice?

[justinklugTV]

I was 19 and spent my life savings on a down payment on a near totalled house. Originally it was valued at 60, 000. 8 years later today, it's valued at $250, 000. You'd think I'm rich, but if I sold it, I could only afford a smaller house. So f*cking weird.

[chillypacman]

Speaking from Australia, for the love of all that is holy do not copy anything we did here. The lesson any country should take away from our example is the lower you make the barrier of entry into housing the more rich old fucks will buy houses and push prices up.

You need a solution that targets the core issue of using houses as an investment asset classes.

[tthien]

As long as houses are an investment, we will never have affordable homes.

[eyvindjr]

In Norway, there is a significant difference in tax for your primary living property and secondary properties, making it much more lucrative to sell a home as you move instead of hoarding real estate. It does not solve "affordable housing", but it helps.

[DonaldMark-nese]

I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways

[wilberwhateley]

What’s the point of having an economic system at all if no one can afford to live in it? Housing costs *must* come down - one way or another…

[WanderingExistence]

Henry George was also in favor of taxing all types of natural resources. Alaska has been doing a UBI since 1982. It is funded by charging oil companies fees to extract oil from their land. We shouldn't let corporations be extracting and excluding natural resources for free, they should be paying for value that the citizens are entitled to! Divvy up the revenues into a citizen's dividend and pay people for being a part of a country that generates economic value.

[georgeearling]

Americans are facing a tough time with their finances, especially concerning housing affordability and retirement savings

[lawrencedyke]

I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?

[oldskoolmusicnostalgia]

-Houses are affordable in places like Vienna and to a lesser extent Singapore (at least for renting). It hasn't wrecked the economy in any way.
-If people spend less on renting or mortgages, that's discretionary income which can be injected into consumption and other economic activity.
-Affordable housing will also have a boosting effect on the likelihood of young adults to marry, have children etc. That too is beneficial to the economy.

Really property developers and landlords are the only segment of "the economy" benefiting from expensive housing.

[bukki]

People will have to accept reality that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. I now look towards the stock market to fuel my millionaire goal. Sure I'm not alone in my chain of thoughts.

[tonysilke]

Housing crisis triggers a market crash or a financial crisis, it could send shockwaves through the stock markets worldwide. I’m worried about my investment of over $600K stocks. Is this a time to consider diversifying my portfolios?

[Anonymous_Lee]

0:59 "There is a big overlap between people who want affordable housing, as long as it's not theirs."
Great summary of the underlying problem! 🤣🤣🤣

[jamm]

The basis of the housing market being the "backbone" of an economy, relies on not supplying enough housing for economically active citizens over the actual GDP that citizens could offer if they were sufficiently housed.

You don't need to give these things for free, but if a citizen has a home, clean water and heating, the rest will practically fall into place.

And the leveraging and reliance on the housing market will, with no doubt, induce severe fluctuations in that market from time to time. It becomes a stock that people sell off in large volumes that affect the overall market value and negatively impact those without the option to buy and sell on an annual basis.

[OceanBlueKeys]

I love that Patrick and Plain Bagel are his friends and they just fire shots at each other in random videos

[kortyEdna]

I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.

[iaroslavtitov]

If federal government adds another land tax, it needs to ban states from charging property tax. Otherwise it will be a double whammy