What Can Be Done About The Housing Market?

Klingsor

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You've posted a video from a Real Estate agent in Phoenix. Did you do any due diligence to check on who he is or if anything he's saying is true, or did you just take every thing he said as a given?

His being in the real estate business probably just means he's more knowledgeable. Like those helpful people who explain to you all the pressing reasons to buy gold *now* . . . and then offer to sell you some.
 
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wallyj84

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His being in the real estate business probably just means he's more knowledgeable. Like those helpful people who explain to you all the pressing reasons to buy gold *now* . . . and then offer to sell
You've posted a video from a Real Estate agent in Phoenix. Did you do any due diligence to check on who he is or if anything he's saying is true, or did you just take every thing he said as a given?

He's just the one I chose. There have been many reports of what he's been talking about. Hedge funds and such buying into the housing market has been big news for a while.
 
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seventiesdemon

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A dangerous economic situation has developed in the world since the GFC.

Interest rates have not risen, they did for a bit here in Aus, then dropped again very quickly. Most of the world has been operating on very little or zero interest rate since the GFC. The housing industry was plodding along ok before the onset of the pandemic when I say ok, it was healthy, meaning it was moving in the right direction.

Economists predictions mean very little to me, they tend to predict for 10 years doom and gloom, then when it happens they say I told you so. But they never seem to be able to predict what causes the ups and downs.

I've worked in the building industry since I was young, my Dad was a carpenter in the industry. Boom and Bust go hand in hand with the building game. It's usually the first to recover, the first to falter. What has become concerning is the amount of government economic stimulus now being pumped into the industry. For me, it's very worrying, because I've learned, the bigger the boom, the bigger the bust.

Once upon a time governments could rely on interest rates delivering relative control of economic activity...if things began to heat up, inflation rise, the reserve would increase. If inflation rose, so usually did wages growth. If things slowed down, interest rates would be lowered to increase consumer confidence and spending. There have been a large number of shifts in the world through many years in regard to product manufacturing, wages growth etc which have made this way of economy control not viable.

Stimulus packages worked well, back 60 70 years ago... The whole of the economy benefited. Factories were there after the war to transform from building ammunition and war machines to appliances, turning skills to invention, creation, production, employment and prosperity. Things have changed drastically since those times.

Governments have done the same now, because of covid, they didn't need to, shouldn't have done so. .....but everything else is out of kilter. Material shortages have caused prices to rise, here its been about 20% over in the US, timber has risen close to 130-150%. There are skill shortages, manufacturing shortages, wages are stagnant, no inflation other than fuel and building products, no interest rate.

There are other things I wanted to say as it's more complicated, but I get bored....:) But, I don't see it ending well.
 
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heinz.friedrich

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Good question.
My suggestion would be the decentralization of the industry and the services or general jobs as best as possible. Furthermore to encourage and promote more home office, so the people flee the cities. You have to make the cities unattractive for people or the rural areas more attractive. So it is harder for them to invest.

In my opnion, they mainly invest in the big cities.
 

Industrialsize

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Good question.
My suggestion would be the decentralization of the industry and the services or general jobs as best as possible. Furthermore to encourage and promote more home office, so the people flee the cities. You have to make the cities unattractive for people or the rural areas more attractive. So it is harder for them to invest.

In my opnion, they mainly invest in the big cities.
Flee the cities? I've lived in an urban environment my whole adult life and would choose to live nowhere else.
 

heinz.friedrich

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Flee the cities? I've lived in an urban environment my whole adult life and would choose to live nowhere else.
A lot of people like the cities for entertainment purposes and because of jobs. I also do not like it. As far as I am aware are the rents much higher in the cities. So that is a bigger problem there.

@wallyj84
I did not really wanted to suggest it, first, but that could be a solution, too:

In Berlin, there will be a referendum on dispossessing the big housing companies. But they do all kind of things and nothing really works. Their former efforts to stop the rising of the prices all failed. I will keep the people informed. That is an old article. There is a referedum now:
Berlin: Protesters Demand Expropriations of Large Real Estate Companies
 
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deleted1366799

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The biggest issue for housing to me is still the boomer generation being alive.

There's too many 55+ neighborhoods they've claimed as if they are mafias lol. Many of those older boomers own 2-3 bedroom homes for 1 senior citizen. They still have the mentality that they must have a home of their own instead of renting an apartment. I'm ve known senior citizens owning multiple homes simply because they can and the market allows it so they hoarde homes and rent them out. This is what drives up prices. Lack of home availability.

Boomers and boomer owned real estate companies profited off cheap properties and they continue to do so preventing millennials from buying them now.

Imagine having neighborhoods where anyone over the age of 55 was denied being able to buy a home there. Guaranteed there'd be boomer outrage
 
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WilliamG

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The biggest issue for housing to me is still the boomer generation being alive.

There's too many 55+ neighborhoods they've claimed as if they are mafias lol. Many of those older boomers own 2-3 bedroom homes for 1 senior citizen. They still have the mentality that they must have a home of their own instead of renting an apartment. I'm ve known senior citizens owning multiple homes simply because they can and the market allows it so they hoarde homes and rent them out. This is what drives up prices. Lack of home availability.

Boomers and boomer owned real estate companies profited off cheap properties and they continue to do so preventing millennials from buying them now.

Imagine having neighborhoods where anyone over the age of 55 was denied being able to buy a home there. Guaranteed there'd be boomer outrage

As a qualified Boomer (62)... I was you! I was all you! Matter of fact I still think like you. I worked with old fucks who made more than me while I was kicking ass in productivity. I jumped companies a lot because I was tired of the BS from the old fucks. Now here I am post pandemic: Still not working (I could if I drove 1.5 hours one way to get there). Near retirement but not quite... And yes I own one home. And yes I watched the values go thru the roof. Is it the boomers causing this? Partially. But it's really large investment firms buying up residential faster than ever in history. Are they boomers? Some. But the boomers who own there single residence are not the problem. It's the greedy fuckers (the ones I stopped working for) that caused this. I feel so bad for the future generations. You got screwed. It didn't have to be this way.

And sadly when the market does crash, the dust will settle with giant investment firms (run by boomers) holding all the homes.
 
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deleted1366799

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As a qualified Boomer (62)... I was you! I was all you! Matter of fact I still think like you. I worked with old fucks who made more than me while I was kicking ass in productivity. I jumped companies a lot because I was tired of the BS from the old fucks. Now here I am post pandemic: Still not working (I could if I drove 1.5 hours one way to get there). Near retirement but not quite... And yes I own one home. And yes I watched the values go thru the roof. Is it the boomers causing this? Partially. But it's really large investment firms buying up residential faster than ever in history. Are they boomers? Some. But the boomers who own there single residence are not the problem. It's the greedy fuckers (the ones I stopped working for) that caused this. I feel so bad for the future generations. You got screwed. It didn't have to be this way.

And sadly when the market does crash, the dust will settle with giant investment firms (run by boomers) holding all the homes.
I do agree with you. There's many real estate investment companies buying up properties as well. Glad you, as a boomer can also see my point that many boomers also contributed to home shortage.

I blame both investment companies and boomers for home shortages and prices skyrocketing all over the U.S.

My boomer parents own 5 homes here in pricey Southern California. I'm so glad they took advantage cof cheap real estate to prevent people from buying and in turn charge expensive rent to tenants. So ethical
 
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deleted1366799

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I'm 63 and I rent, because I want to make room for the next generation.

Well, OK, it's really because I think buying and maintaining a home would be a pain in the ass. But the effect is the same. :)
Lmao it really is a pain to maintain homes, but boomers in their late 70's and 80's just continue to want to live in their own homes.

My parents always complain about being too old to fix issues in the homes they own, yet they still own 5 lmao. I'm sorry, boomers are responsible for the home shortages around the U.S. and price inflation.

I think the federal government needs to limit home sales in certain areas to ONLY young people; meaning no 55+ people or investment companies allowed.
 

Klingsor

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Lmao it really is a pain to maintain homes, but boomers in their late 70's and 80's just continue to want to live in their own homes.

My parents always complain about being too old to fix issues in the homes they own, yet they still own 5 lmao. I'm sorry, boomers are responsible for the home shortages around the U.S. and price inflation.

I think the federal government needs to limit home sales in certain areas to ONLY young people; meaning no 55+ people or investment companies allowed.

I don't blame elderly people for wanting to stay in homes they may have lived in for decades. Aside from that, though, it would certainly be worthwhile to look into ways to make housing more available for young people.
 

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Lmao it really is a pain to maintain homes, but boomers in their late 70's and 80's just continue to want to live in their own homes.
[/QUOTE
I am 64 my husband is 70. We own our home. We like our home. Why would we want to leave it?
 
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deleted1366799

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I don't blame elderly people for wanting to stay in homes they may have lived in for decades. Aside from that, though, it would certainly be worthwhile to look into ways to make housing more available for young people.
I do blame older people for wanting 2-3 bedroom homes to house 1 person. I do blame older people for owning neighborhoods and strictly making them 55+. There's so many of those neighborhoods, that it's becoming harder to steer clear of them. Hell most 55+ will actively seek out ways to prevent building of newer homes around them!
 

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People buying up houses they can't sell will eventually burst. Which will result in cheap houses being available. LOL

Another option would be tax incentives for building tiny houses, most people don't need a giant house they just need a little roof over their head and a place to call their own.

Also an issue is people buying up houses to rent out, my community is wrestling with this including whether there should be "no renting" zones in the city. On the one hand government regulations are abhorred by conservatives, on the other hand they like them if they think it will keep out riffraff (which they assume home renters to be).