Zoning is, in fact, the problem.

Tiggity®

Oculus Spirit [97807]

TigerPulse: 100%

Posts: 64931

Joined: 7/13/02

RFK's proposal is to have a governemnt funded 3% guarantee

Sep 3, 2023, 7:36 PM [ in reply to Sorry you think that's "picking a fight" ]

towards paying mortgage rates, meaning the buyer now at 7% gets a 4% effective rate, making the house affordable again. And while that sounds nice, it only ensures more inflation in prices as there is a market that has a supply problem, interest rates notwithstanding. And that still won't entice many more people to sell with an offset 4% mortgage rate anyway.

Not to mention this puts taxpayers in the mortgage business now worse than ever, even though Fannie and Freddie already underwrite most mortgages.

You don't unscrew up years of sub 3% rates. You can only wait it out until people are forced to sell, and builders build smaller homes, and people adjust. And that's not going to happen for many years. It will be a decade probably before the mortgage market settles down.

And BlackRock, etc. know what Powell knows, and that is a persistent labor shortage will keep supply of homes low, coupled with the rate issue, owning a home will be the ultimate leverage for big corporations long term. This is not stuff people really know about, but they will eventually.

And younger people will get screwed the most in all of this. The pandemic marks the inflection point where future generations will not have it as good as prior generations. Nothing goes up forever. Not standards of living, not income, not jobs, not stocks, everything must fall at some point. Recessions are healthy to prevent depressions, and worse. We've been avoiding them for decades now. And by spending decades avoiding any downturns, we're just enabling an eventual downturn that will be more and more severe.

The US is not the only country facing this problem. Many others are going through the same. Labor shortages, inflation, and eventually it leads to war. It's almost inevitable. It will start with a tyrant, pick the tyrant, doesn't matter. When their economy sinks, and they have a crisis, they will start a war as a diversion to maintain power and control. Because as a tyrant running a sinking ship, you can either go down with it with an internal revolution, OR start a war with an enemy where people will refocus their grievances on the enemy, keeping the tyrant in control. Happens all the time in history books. Democracies will be more prone to revolutions over wars, although they may well jump into war as well for much the same reasons.

What RFK is proposing sounds good n paper. It will endear him to voters I'm sure. But it does nothing to solve or remedy the overall problem. It's just another expensive band-aid of another flavor.

flag link

military_tech

thumb_down

thumb_up

that started it (they had offers on 10 houses at once when I was looking for a house) but when their money ran out, we got double hit by REITS and other private equity firms like Goldman Sachs and Blackstone buying everything with a front door. They'd come in and offer anywhere from $20K to 2x over asking, and wiped out an entire group of buyres (like me) that were just trying to buy a house to live in.

I think it's gotten worse since 2022 in the tourist areas (Isle of Palms, Folly Beach etc). Houses there have doubled + in 3 years.

Here's one example I know because I put in an offer on this house. Initially they were asking $638k; I think I offered $650k, and it sold in 4 days for $685.

Whomever bought it did absolutely nothing to it--it looks identical to when I offered on it in '21. They
rented it out for 2 years, and flipped it in June for $1.175 million. That's almost doubling their money in 2 years. IMO, looking at comps on the island now, it could be flipped again for $1.3-$1.5 million if someone wanted to make a quick couple hundred thousand.

https://www.zillow.com/homedetails/20-25th-Ave-Isle-Of-Palms-SC-29451/10936144_zpid/

RFK is the only candidate talking about the housing

Re: RFK is the only candidate talking about the housing

Yes, yes I do

And you think the federal government is going to fix that?

I'm not sure why you're trying to pick a fight

Sorry you think that's "picking a fight"

Potentially. And I have no solution but all I know

You've responded three times.

RFK's proposal is to have a governemnt funded 3% guarantee

Never said what is proposing is good or bad

You arent 100% wrong, but you seem to be coming at this

Re: I'm not sure why you're trying to pick a fight

Re: RFK is the only candidate talking about the housing

YIMBYs have been talking about the ruinous effects of

Zoning is not.the problem

Re: Zoning is not.the problem

So well regulated capitalism? Just in housing or other sectors?***

Well regulated in all sectors

OK dont disagree. Banks are another good example.***

The central bank system is what screws up the housing market

Re: RFK is the only candidate talking about the housing

Re: RFK is the only candidate talking about the housing

property tax is higher so

Its funny who that was originally attributed to

Interesting. I had no idea.

Around here, at first it was co-ops of private investors

TigerBoard POTD