Interest rates must go up. It’s the only lever available to push housing prices down in the near term.
Avicebron•36m ago
Or we could, build more housing, tax second homes at like 5000% percent and divert that money into housing relief, outlaw AirBnB, prevent people from moving into an area and buying out the locals... the list goes on
toomuchtodo•20m ago
When will that deliver? Years from now, maybe, if you get started today and can maintain progress. Benchmark rate can go up today with an FOMC meeting and immediately deflate real estate asset prices. Congress is useless and the Federal Reserve is independent.
Start the clock.
(the Federal Reserve directly contributed to this problem by being the buyer of last resort for mortgage backed securities during the pandemic; this created the ultra low mortgage environment that has contributed to inflated real estate prices beyond what wages can support, it is reasonable and prudent for them to reduce the inflation they themselves directly contributed to)
dragonwriter•26m ago
No, we simply need to (the state level is the most likely place to do this) strip localities of the power to limit housing density by zoning restrictions and discretionary de ial or delay of permitting.
That’s the barrier to adequate housing everywhere there is unmet demand driving high prices. You don’t need either monetary (interest rates) or fiscal (taxes/subsidies) hammers to get supply built, not will you do much by hitting the problem with those hammers as long as localities are literally prohibiting building.
toomuchtodo•51m ago
Avicebron•36m ago
toomuchtodo•20m ago
Start the clock.
(the Federal Reserve directly contributed to this problem by being the buyer of last resort for mortgage backed securities during the pandemic; this created the ultra low mortgage environment that has contributed to inflated real estate prices beyond what wages can support, it is reasonable and prudent for them to reduce the inflation they themselves directly contributed to)
dragonwriter•26m ago
That’s the barrier to adequate housing everywhere there is unmet demand driving high prices. You don’t need either monetary (interest rates) or fiscal (taxes/subsidies) hammers to get supply built, not will you do much by hitting the problem with those hammers as long as localities are literally prohibiting building.