Prices adjust to what people can afford. When you have people who can pay whatever you are asking, prices go up.
Same goes with loans. In fact, you some times you can’t even get a loan for an affordable house if it is in a location where the bank feels is hard to sell
What were you born in 2009? Prices have been outrageously detached from reasonable interpretations of “affordability” for ages and banks are more than happy to collect interest for the rest of your life.
I think you’re reading into this, what you want to read and not what I’m saying
My point was that if we all started from scratch, and fortunes weren’t passed over from generations to generations, the social and economic gap would be smaller
Ehhhhh only to what it can be reliably sold for, not to what most people can afford. If 10% of people are multimillionaires (and they are in the US) but 40% of people don’t even have $500 to their name (also is the case in the US) you can absolutely continue to see a housing market that is in part just passing wealth around that top 15%, especially if they can turn around and rent the investment properties to the bottom 50% to make even more money
Now, things do get really interesting when the wealthy aren’t interested in the property in a given area, and the market flips from ponzi scheme to actually being houses that people can realistically afford and do live in. Of course such places also tend to be on the knife edge of also being mortgage deserts because they tend to be very small towns with dwindling populations
Ever heard of homeloans?
You would only end up with more people in debt, not cheaper houses.
Prices adjust to what people can afford. When you have people who can pay whatever you are asking, prices go up.
Same goes with loans. In fact, you some times you can’t even get a loan for an affordable house if it is in a location where the bank feels is hard to sell
What were you born in 2009? Prices have been outrageously detached from reasonable interpretations of “affordability” for ages and banks are more than happy to collect interest for the rest of your life.
This is because some people still can afford to pay outrageous prices or willing (forced) to go into unreasonable debt.
Yeah, those damn people who refuse to be homeless are ruining it for everyone
I think you’re reading into this, what you want to read and not what I’m saying
My point was that if we all started from scratch, and fortunes weren’t passed over from generations to generations, the social and economic gap would be smaller
Prices would adjust to what people could pay
Ehhhhh only to what it can be reliably sold for, not to what most people can afford. If 10% of people are multimillionaires (and they are in the US) but 40% of people don’t even have $500 to their name (also is the case in the US) you can absolutely continue to see a housing market that is in part just passing wealth around that top 15%, especially if they can turn around and rent the investment properties to the bottom 50% to make even more money
Now, things do get really interesting when the wealthy aren’t interested in the property in a given area, and the market flips from ponzi scheme to actually being houses that people can realistically afford and do live in. Of course such places also tend to be on the knife edge of also being mortgage deserts because they tend to be very small towns with dwindling populations
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