Great. Then make housing where it's already zoned but underutilized. Large apartment/condo buildings within a quarter mile of a Metro. Greenfield up-county. Y'know, housing. Without the community destruction. |
Without the what? Building housing is building community, not destroying community. |
Alright, well look how well that works for communities when there is no stability and everyone rents. The primarily renter owned communities go to hell and everything becomes slums. You have been deluded by special interest groups. A society of mostly renters benefits no one except for the wealthy people that own the rental properties. Housing policy, economic mobility and middle class financial stability are inseparable. You cannot evaluate them separately and act as they are unrelated. I did not say that they should not build more homes. I just think that this policy is a huge mistake. It would be a better idea to change zoning to allow for more construction of single family homes (smaller minimum lot size within walking distance to metro) higher density townhomes communities (in walking distance to metro) to provide ownership opportunities and increase affordability. Multiplex units on small lots for large swaths of the county are not a good solution and it will be detrimental MOCO. |
Great, then make it all contingent on it being among the types of community that the considerable majority of current residents of that community might seek. |
|
You can try that line, but the way you use it also is a logical fallacy, in this case alluding to a conclusion (that you'd not provided a strawman argument) when the premise ("strawman" being misused) is false. You absolutely set up a strawman argument in your prior post. You know that, of course, but for others' benefit: https://en.m.wikipedia.org/wiki/Straw_man |
I think you misunderstand the word community. Community does not mean "current residents and people the current residents approve of." |
I'm sorry, but what's your point? Is your point that people don't need to be able to cross the street safely because they don't do it that often? Or that it is safe to cross the street because most of the time, people do it without getting killed? |
And it certainly doesn't mean outside influencers, either. |
Financial security and housing security go hand in hand. There is considerable value in locking in your monthly housing cost. Any appreciation is a bonus. Since buying five years ago, my monthly housing cost has increased less each year than it did when I rented. When I back out principal from PITI, it’s nearly flat. Diluted ownership is also better for the market than concentrated ownership. Concentrated ownership enabled the price fixing schemes that many big landlords participated in and have subsequently settled. You don’t read much about these on YIMBY blogs, but there’s no question that they drove rents higher. It’s no coincidence that rents fell (or at least didn’t increase as fast) at buildings across the county once attorneys general started suing big landlords for colluding a couple years ago. We should really focus on making ownership more accessible, whether it’s condos in a high rise, townhouses, duplexes, or detached single family houses. Enabling financial certainty for more people and diluting ownership are both good economic policies. |
Enabling home ownership via fixed rate 30 year mortgages is, I think, a recent and American policy choice. At best it's a good forced savings vehicle. It does, as you mention, "set" housing costs but at the cost of people bearing the risk of a significant part of their net worth being in a single fixed depreciating asset -- not very a diverse or liquid way to hold wealth. Trouble getting insurance? Live in a declining rust belt city? Need to move for a new job? Tough luck. What makes them not depreciating assets lately? That there's not enough of them. So yes, making ownership (or even other housing options) more accessible is good. But it's in tension with the goal of providing financial security via encouraging people to put a lot of their wealth in that one asset. |
What makes them not depreciate is the scarcity of land. The 30-year fixed is a uniquely American policy choice, but it’s in practice tougher for condos. That would be a good thing to fix. |
The land doesn't depreciate. The structures on the land do. What keeps that from happening (pricewise, the assets still need upkeep, of course) to a lot of places is the lack of other housing options. Not land. |
Of course the structures depreciate. Happily the appreciation of the land generally outpaces the depreciation of the structure. Lots in East Bethesda go for more than $1 million now, far more than the land plus structure cost when the seller purchased it decades ago. You make a fair point about the forced savings of repaying principal, but locking in housing costs in prior year dollars leaves more money for investment in later years. If, for example, you bought in 2004, you’re paying 2004 housing costs using 2024 dollars. That leaves a lot of money for investment in riskier assets, which is where the real wealth accumulation comes. Someone who rented for those 20 years would have likely seen rents increase faster than wages, and they’d have less money to invest (as a percentage of overall earnings) than they did 20 years ago. In short, owner occupancy is good for individuals and it’s good for housing markets. It’s bad for corporate landlords because they lose pricing power. YIMBYs are hostile to owner occupancy because it’s bad for the corporate landlords who established the YIMBY doctrine. |
There's rent vs buy calculators out there and the numbers are going to vary if you compare say an autoworker who had a lot of their net worth in a home bought in 1965 Detroit vs a government worker in 1965 Bethesda. In the end it comes down to you can't have housing both be a source of wealth growth for homeowners and something that everyone is going to be able to attain.
You might end up what we have now: strong political will to maintain high housing prices, vs the strong political will to build more housing. |