Posted on 01/13/2022 2:21:23 PM PST by millenial4freedom
Senator Elizabeth Warren is doubling down on her criticism of private equity’s involvement in the U.S. housing market as the nation grapples with an affordable-housing shortage.
(Excerpt) Read more at finance.yahoo.com ...
But I thought that they liked “equity”...
“affordable-housing”
I guess the definition of that is about the same as “fully vaccinated”
Whatever they say it’s supposed to be on any given day
I’d sooner trust a carpet bagger that a Commie Bagger.
The problem isn’t lack of housing people can afford, it is lack of people who can afford housing. The underclass — those with no job or property — is growing fast. The lower middle class is shrinking. Eventually, soon, the upper middle class will be vanishing. All these annoying young people being cowed by the socialists will grow into homeless complainers. We really have to return to self sufficiency, which requires a return to dying of starvation and exposure. A workable alternative does not exist. It is socialism then die, or it is survival of the fit.
Inflation has made building a home more expensive. Forget the exact figure I heard but a builder said his prices had gone up 60%-70%, and that was just materials. If you can find all of them you need.
My friends who restore old homes are always complaining about not being able to get basic construction materials. One day they can’t get junction boxes, some other day they might not be able to get interior paint, etc.
Progressives seem to believe whatever they want should be available on their terms, and that wealth is durable and fungible and divisible.
“Supply and demand” operates otherwise. Real estate is a strictly limited resource, with wildly varying value, which cannot be relocated. Housing prices are high where more people want to live than land can support. Area population grows, be it by moving or procreation; the desirable land available doesn’t grow, and neither does the tolerance of population density. Either the quaint whatever gets replaced by ever-denser housing, or prices go up - until people stop wanting to move/stay there.
There is LOTS of empty land available. Much of it is uninhabited only because it is insufficiently inhabited. Want affordable housing? visit Zillow.com, set the largest search area possible (pick a state), set the price, get results.
Too many just don’t want to move, and think local prices shouldn’t change just because. Sorry, economic realities happen like laws of nature - they don’t change just because one doesn’t like them.
Actually the Wise Indian finds a nut from time to time. PE in the housing market right now is up to no good.
Liawatha speaketh. All fall down and obey.
Scream at politicians all you like. They thrive on that.
Move.
Go where zoning regs are minimal.
Adapt to what’s available.
Get creative with building materials.
Nobody cares if you’re outraged (unless they can leverage it to their own profit).
As Born observes, this will largely resolve via burnout: the powerful ignorant self-righteous will enforce their own idiotic plans, economics will be disrupted and self-correct (probably viciously), populations will get increasingly dense until they spontaneously combust ... and your objections will be duly ignored.
Move.
The reason for all of this is unfettered immigration of both the illegal and legal kinds.
We had a population of around 150 million during the 1950s, 200 million in the 1970s, and now we are at around 350 million !
ALL IMMIGRATION MUST BE IMMEDIATELY HALTED FOR AT LEAST 50 YEARS.
When she rids herself of all of her investments, real estate, etc....we can talk.
If inflation is going to be 6% a year for 10 years and I can get a 3.5% 30-year fixed rate mortgage due to Federal Reserve stupidity, the mortgage is about a 25% giveaway.
People who might just pay $300,000 for a house will rationally be willing to pay $375,000 ($300,000+25% of $300,000) for the house to get the artificially cheap fixed-rate mortgage along with it.
The solution is for the Federal Reserve to be barred by federal law from buying long-term fixed rate mortgages.
In Britain, I believe the 5-year adjustable rate mortgage is common.
With 5-year adjustable rate mortgages, the bids for houses will not be sent skyward by low mortgage rates that have no long-term guarantee of continuation.
3.45% mortgage - 3.45% return
typical house - 15% annual return
lithium - 700% return since November election
oil - ~50% return since Keystone pipeline cancelled
Privity equity will buy houses and commodities instead of mortgages if interest rates are too low.
“While wages barely budge?”
A year ago my local Walmart sought to pay a starting wage of $11/hour.
It is now $15/hour.
Office productively has sunk with remote working, so office work compensation hasn’t soared.
They have already socialized student loans. The dominoes keep falling.
We tried ‘affordable housing’ decades ago. It was called Cabrini-Greens...didn’t work then and won’t work now unless everybody wants to live like the Chinese do.
That will just increase rent prices by reducing the rent supply stock. I sometimes wonder if these people are truly idiots or just completely pandering to the idiots.
Yup
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