Homeownership Is Not the American Dream \ stacker news ~econ

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Homeownership Is Not the American Dream mises.org/mises-wire/homeownership-not-american-dream?utm_source=MI+Subscriptions&utm_campaign=8b021349ea-EMAIL_CAMPAIGN_2024_02_29_06_22_COPY_01&utm_medium=email&utm_term=0_-0aec14e5f3-%5BLIST_EMAIL_ID%5D

186 sats \ 3 comments \ @Undisciplined 1 Oct econ

By Artis Shepherd

Home prices continue to rise as the government tries to further intervene into the housing markets, all in the name of the “American Dream.” However, remember that these massive increases in housing prices began when the government decided to make housing more “affordable."

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167 sats \ 2 replies \ @kepford 1 Oct

Local and state governments have long restricted the supply of housing by dumb zoning and building codes. Specifically in highly desirable locations.

I think this fact is often overlooked.

The other factor of course is cheap money / credit. But what I've been hearing for a few years now is that supply of housing is limited.

These zoning and building rules also contribute to homelessness. It is virtually impossible to legally build small / tiny houses in most cities. So what do cities do? Spend massive sums building apartments that take years to complete and cost the productive classes far to much money.

Its all so absurd to me.

0 sats \ 1 reply \ @Undisciplined OP 1 Oct

The supply thing is interesting to me, because Boomers should be starting to put a lot of inventory on the market. I think they haven't wanted to, since the market cooled down, but eventually their houses will flood the market.

26 sats \ 0 replies \ @kepford 1 Oct

I'm getting this from investors I listen to and people in the industry I know.

You are correct about people sitting on their houses. As interest rates fall the market will heat up again because there is a limited supply and demand is being suppressed by the high cost. Granted, historically it isn't high(loans). But we have short memories.