Reply to If you were born in 1990, how do you plan on ever affording a house?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote]Furthermore, it's been public policy in recent years (most egregiously post-2008 fin crisis) to move heaven and earth to keep housing prices AS HIGH AS POSSIBLE! Think about that: the government works to make a fundamental human need as expensive as it can. When you understand that this is concurrent with policies to suppress wages as much as possible, you should see this as a very bad situation.[/quote]

Can you explain a little more about these policies- who is making these decisions and what is the mechanism that carries them out? Thanks!

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Bank bailouts, conservatorship of Fannie/Freddie, and QE.  37% of home purchases were made by investors last year.  Yeah this is sustainable.[/quote]

What do you mean when you say, "...the government works to make a fundamental human need as expensive as it can." Who is forming this public policy? Elected officials? Or private business people? Where is the policy coming from?
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I'm a new PP but seriously you don't understand this?

You bail out the banks to ensure that credit flows freely. People can buy houses, with higher price points, thanks to mortgages. Prices therefore go up.   If the banks had not been bailed out, credit would have been tighter. Lots of people would not have qualified for mortgages. Lots less people would buy. People would need higher downpayments. Higher interest rates. Total available mortgage levels would decrease.  Less people buying houses, and those that are buying have less cash to do it.  That means housing prices don't get bid up.

Fannie/Freddie: same thing as previous paragraphs.

Mortgage interest deduction. Encourages people to buy more houses than they can afford. Also, no rental interest deduction. What is that??? How is there not a rental deduction? This is one of the most fucked up US policy things I've ever heard of.

Fed has spent a lot of time not actively enforcing regulations regarding oversight of foreign money coming into the US.  Lots of that money is being parked into buying real estate. Drives up prices. Cash buyers. Makes it harder for non cash buyers.

First time home buyer programs.

Fed has kept interest rate crazy low to encourage spending, spending, spending.  Whether real estate or otherwise.  Manipulated low interest rates mean house prices go up.

That's just a few I thought of off the top of my head.  
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