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To: Oldeconomybuyer

This is a complicated situation with a lot of factors:

Govt policies causing market distortions in the past leading to abnormally high rates of home ownership.

Those distortions led to high foreclosure rates, taking former homeowners out of the ownership market and into the rental market where they will be stuck for years due to lowered economic mobility in the new, more socialistic America.

A construction halt after the financial crisis leading to a housing shortage now in some areas.

A significant fraction of home owners can’t sell and move up, down or sideways due to negative or low equity positions.

Due to land costs and tightened construction codes, new homes are out of range for almost all first time buyers, leading to a shortage of resale homes in some areas.

Higher mobility by young Americans today as they chase jobs around the country, leading to lower home ownership. Ownership rarely works out well unless one can stay in place for 7-10 years.

For starters...


2 posted on 04/28/2015 10:04:26 AM PDT by SaxxonWoods (Life is good.)
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To: SaxxonWoods

Your analysis of the situation covers all the bases well. It all rolls back to the “unintended consequences” of government intervention achieving the exact opposite to the goal. Much like the War on Poverty creating more poverty or student loans increasing the cost of college.


4 posted on 04/28/2015 10:17:28 AM PDT by Flick Lives ("I can't believe it's not Fascism!")
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