Biden-Harris Administration Takes New Actions to Lower Housing Costs by Cutting Red Tape to Build More Housing.
FACT SHEET: Biden-Harris Administration Takes New Actions to Lower Housing Costs by Cutting Red Tape to Build More Housing | The White House
Put caps on how many homes any family/llc/company can own. Stop any foreign entity from owning more than two single family homes in the US, and the problem will be fixed.
Homes aren't scarce because housing is scarce. Homes are scarce because way too many people are making their living as landlords and property investors.
It's both.
Limiting the number of homes people can own will reduce the incentives for people or real estate developers to build more. You may end up with lower supply of homes, which may drive up price.
Modern economies usually depends on economies of scale to make profits. Imagine if a law was passed to limit the number of groceries people can buy in a supermarket because the government think it'll help poor people by hoping the law will drive down price. This would probably backfire, prompting the supermarket to buy less from distributors, and sell at a higher price because now they can't count on economies of scale.
In short, I'm saying your solution is naive.
There's already plenty of homes if they quit being ran as BNB's.
As far as incentives for builders to build homes, you're currently in a self harming system. For a single family home the price per square foot average has literally doubled over the past 15 years. A house that would have cost $120,000 just 15 years ago to build, now costs $250,000. Building supplies are through the roof because demand is already so high for them.
Enough houses already exist. Stop the bullshit house collectors, then the market actually have houses available to buy and prices will drop, so building new ones sliws, so building supply prices lower again, and houses stay a bit closer to being affordable again.
I paid $130k for a 3 year old house. Now it's a 17 year old house but it's currently worth around $300k. That's absolutely stupid.
Good
Someone should make a pie chart of how much a house cost is labour, materials, taxes/government shit, and how much just goes to the landlords pocket.
If we really want to solve the problem we mine as well use proper data to see where efforts would be best spent
That's going to depend heavily on state, municipality, and zone type of where each project is taking place. You'd also need to control for local labor prices and materials cost.
There's too much variability in local conditions to make broad statements.
This is such a non fix being spun into a fix that this premise is garbage.
If more houses are built and become available, rental markets drop. Landlords are not going to keep buying houses and letting them sit empty. It's not that complicated.
Developers in Canada are going bust because houses aren't worth the building costs. No amount of clearing red tape changes the insane cost of materials.
Do they think the new homes pricing is going to reflect actual supply/demand or the twisted nightmare that is venture capital investment plans in real estate?
Oh, good, even shittier build quality. How about rezoning?
And where do you want to PUT these bungalows? We won't see the density we need, and it'll just be more sprawl of shitty little wooden urban huts.
More house for llc. Make law to house people not corporation.