This is kinda like saying we need more farms to solve hunger.
The cost of housing is very detached from supply. For rentals, companies bought up housing and just jacked up the price, because renters are a semi captive client base.
New construction sometimes doesn’t even help, when developers knocks down an old affordable 12 unit apartment building and build a luxury 36 unit building, you’ve created -12 units of affordable housing.
Even for home buyers, they’re facing a major up hill battle going against existing home owners who have access to the capital of their current homes, and even worse corporate home buyers.
This isn’t to say supply isn’t an issue and we can ignore it, but we need to stop housing from just being an investment vehicle. Otherwise we’re just going to get garbage housing at prices no one can afford.
Again I’m not saying supply isn’t an issue, and zoning is def a major problem in many states. But if the issue was only supply, rent would be growing more or less in line with the population not at the astronomical rate that it is.
yeah but due to immigration the population is growing in the USA, AFAIK, also you need to account for the trend of Urbanization (somewhat offset by move to WFH)
When Vanguard and Blackrock own half of the supply, then it’s not a free market. Also, you said it’s not detached from supply at all, but then proceeded to list reasons detached from supply that affect cost.
This is kinda like saying we need more farms to solve hunger.
The cost of housing is very detached from supply. For rentals, companies bought up housing and just jacked up the price, because renters are a semi captive client base.
New construction sometimes doesn’t even help, when developers knocks down an old affordable 12 unit apartment building and build a luxury 36 unit building, you’ve created -12 units of affordable housing.
Even for home buyers, they’re facing a major up hill battle going against existing home owners who have access to the capital of their current homes, and even worse corporate home buyers.
This isn’t to say supply isn’t an issue and we can ignore it, but we need to stop housing from just being an investment vehicle. Otherwise we’re just going to get garbage housing at prices no one can afford.
it’s not detached from supply at all, single house zoning and mandatory minimum parking make for a whole lot of trouble in the US
Again I’m not saying supply isn’t an issue, and zoning is def a major problem in many states. But if the issue was only supply, rent would be growing more or less in line with the population not at the astronomical rate that it is.
yeah but due to immigration the population is growing in the USA, AFAIK, also you need to account for the trend of Urbanization (somewhat offset by move to WFH)
When Vanguard and Blackrock own half of the supply, then it’s not a free market. Also, you said it’s not detached from supply at all, but then proceeded to list reasons detached from supply that affect cost.
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