Why there's no affordable housing... #shorts

Why there's no affordable housing...

Here are the three main parts of the problem:

Part 1: Large companies like BlackRock have dedicated tens of billions of dollars to buy homes and turn them into rentals. Depleting the market of affordable homes. 1 in 14 home purchases in 2023 were bought by investors.

Part 2: Builders make more by building bigger. The profit per house is bigger the larger the home. Not against people making money, recognizing the need for smaller houses as family formation (the number of new households / soon to be first time home buyers) is on the rise.

Part 3: New construction JUST barely caught up to 2007 numbers in 2019. We have almost 13 million homes that that weren't built because the recession knocked 70% of builders out of business.

What this is causing. Spikes in rent and home values. 40 years ago rent accounted for 18% of household income, now it's over 35%. Renting used to be a way to save for a home, at 35% that's not happening. Homes have spiked in cost over the last 4 years 78%. Homeownership is the number 1 determiner of wealth for a family. People not being able to afford to buy means those people/families lose the interest deduction (2-4k/yr off taxes) they're not building equity paying down a mortgage & don't have an appreciating asset.

WORSE: Where a fixed rate mortgage is fixed, giving people stability, rent has averages an 8% increase per year.

What we know: 1st We're missing 190,000 rental properties here in Michigan alone (apartments, houses, duplexes), over 6 million nationwide. 2nd Builders build for profit, whether it's rentals or single family homes.

Solve: Use the tax code to incentivise builders to build smaller more affordable homes for people to buy. Maybe it looks like tax credits if a certain percentage of their sales are 25% or more below a cities median sales price? I'm not smart enough to come up with the exact thing, but am to know the direction we should go in. 2nd use that same tax incentive to push builders to build more affordable non-luxury rentals & apartments. Bring the supply and demand of both into equilibrium.

What do you think should be done?

#house #realestate #homeownership #comedy #funny #funnyvideos #housingmarket #firsttimehomebuyer #affordablehousing

[azelight]

Can we please for the love of everything ban these FUCKING COMPANIES from buting any residential property.

[krunchyapples]

It should be fucking illegal for equity firms who basically have everyone's retirement funds to play around with to buy single family houses

[Gravedigger]

Private homes should only be sold to private families. Not corporations.

[fungi]

Block Rock bought homes in the new development of my small Texas town. There’s limited housing already. Private equity firms MUST get out of the home buying business.

[jameswillen]

My issue is with the fact that most of these houses end up empty and the companies are allowed to write it off their taxes as a loss. As soon as you fix that tax loophole you'll see these companies drop these properties faster than a ton of bricks.

[Notthegm]

Outlaw private equity firms from owning any single family homes

[DennisSmith-dqiu]

Put my house up for $840k
Sold for 927k
TO A GOVERNMENT MAINTENANCE GUY CLEANING THE HIGHWAY IN CALIFORNIA his income was $245k a year.

[Chimaster]

De-incentivise the rent seeking behavior of private equity companies and watch the country and economy just fix itself.

[SerialSnowmanKiller]

There is long established precedent for one of the government's jobs being to break up monopolies. This is a monopoly that the government COULD do something about, but is blatantly ignoring. Why do you think that giving the government more power will in any way help?

[doginhat]

We need to deal with them as we did with the French royalty

[backdownhippy]

Companies should not be allowed to own residential single family homes. Ever.

[johnathanashley]

It’s sad what they’re doing. The trailer parks are the same. All of the owners are buying up all of the trailers and renting them out instead of letting people own their own mobile home. It’s absolutely appalling how greedy everyone is becoming.

[tedebayer]

In Canada and same sh*t here... out of country Corporation bought every single new build in my City of 170k in 2017-18 and rented them out...prices doubled by 2020, and no one can afford the rents. Governments have done very little to stop the madness.

[Daveloper_PL]

This should be illegal just like market manipulation on the stock market is. You could easily spike the price of shares and create a false sense of demand causing others to buy in but that doesn't happen because its very illegal; however, if you do this with houses somehow its perfectly fine because instead of stealing someones spare change on the stock market you are only taking ability their ability to have a home!

[Adonis-qbze]

We have enough empty homes to end homelessness, but those in control choose not to

[skotnica]

A local government's greatest crime and most ingenious was to convince that it was the landowner that made the cost of housing so expensive.

[Madd_Jack]

Californians moving in are bad news for more than just overbidding. But Blackrock buying up all these properties is horrifying. "you will own nothing and be happy".
Edit: They often don't even rent these spaces out... They'll just sit there with an astronomical monthly rent price, vacant.

[denmasterben]

that should be illegal. how are normal folks supposed to compete with that stuff?

[DG]

So true, an unprecedented number of California's selling 1milliom dollar studios in ca buying 500k 2 bedrooms in az with cash, now no az residents can afford to buy a home.

[mitchhaelann]

'Private equity' companies just flat out shouldn't exist.

No company should be allowed to exist unless they actually make some kind of product or service purchasable by the public.