Reply to Will houses ever become affordable again?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][b]If we build more housing.[/b] Basically the great recession killed housing starts and they have never gotten back to where they were. [/quote]

That won't affect the prices because if you build it, they will come. So many people want to live here, they just keep packing them in. Increasing supply from an economic principle should lower price but in reality for real estate in the DMV that won't happen and hasn't happened because more and more people just keep moving here. So more demand with more supply.

That was part of the missing middle argument, that home ownership is like a property ladder and in order to make those apartments and homes more affordable at the bottom of the ladder, we needed to increase supply in the middle and people move up the ladder, freeing cheaper housing, stabilizing prices. But that assumes a limited demand. In reality, there is just too much demand and it keeps increasing. Hence you can keep building gigantic $2 million duplexes and THs and people will STILL buy them. Prices will never go down here. [/quote]

Prices will stabilize with more supply IF you sharply tax investment properties/2nd homes. The issue is that people retain their cheap condo/starter home on the bottom of the ladder and rent it out. You need to force that supply back into the ownership market for the virtuous cycle to continue. Also need to ban LLC's from owning SFHs, townhouses, and individual condo units. If big money corporates like Blackrock want to own RE, they need to build or purchase large multifamily developments to rent out. [/quote]

None of those things are going to happen in government. Stop with the fairytales. [/quote]

Not sure why not. So many jurisdictions claim to have housing shortages and instead of dumb proposals like missing middle or thrive 2050, they could just dramatically increase property tax rates on investment properties and the housing supply would dramatically increase overnight. Kind of baffling actually except that no one actually really cares about housing shortages and instead the goal is to make developers rich. [/quote]

I don’t think you have thought this through at all. If you suddenly pull that many rentals from the market then rents will soar. It’s already very difficult for families to find larger rentals so that would be a bad thing for our community. Small landlords with a rental are not the same as “developers” and are also not getting rich.[/quote]

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