That’s… A truly remarkable perspective lol. I just told you that the supply is artificially constricted to inflate prices and gouge profit, and your response is “that’s what makes it good.”
What’s next, investment groups buying up a significant percentage of non-perishable foods if it’ll make “good investments because supply is too low”? Basic necessities of life shouldn’t be investments because supply and demand aren’t really relevant when you need something. It’s just extortion with extra steps.
A huge portion of the population is choosing not to have kids because houses are too expensive, and even if they manage to get one, raising a family on top of that is too expensive. When investments are negatively impacting the entire population of a country, that’s a bad thing.
Yes, though you did just call them good investments. An investment being good solely because the market is an anti-consumer purgatory isn’t a good investment. The moment the housing market is fixed the investment collapses back to being driven by property location instead of the simple fact that its exists. Not to mention concerns about another housing market crash or recession waiting in the wings.
Homes should depreciate in value, similar to cars, and imagine what would happen if car manufacturers decided they liked the Covid price points and supply constriction, and started treating them like the housing market? There’s more money to be made in ensuring there isn’t enough supply than there is in meeting demand.
Probably would have been worth clarifying that distinction earlier, but I’m not attacking families looking to pay for a home to be built. Construction companies that build new homes en masse are doing so to make money, not to address the housing shortage.
Much like Nissan being pleasantly surprised at making more money by discontinuing production of their cheaper models, larger construction companies aren’t at some sad loss to meet demand. they acquire building permits based on how many months of completed housing supply they have waiting to be purchased. When it passes a certain level, apparently 6 months of supply, they slow down completions and reduce the number of new permits until the supply is sold at the prices they want.
Otherwise it would be less profitable. I’m not saying there aren’t other issues, and smaller home building outfits struggle with local permitting, keeping employees, and rising prices for materials and appliances. But a huge issue with the industry is that it’s fundamentally against their best interest to solve the housing shortage. There’s a happy little feedback loop between builders and investors that keeps pumping home prices up, which lets new ones be sold for more, which pumps home prices up. Which restricts more and more of the housing market to investors, until the dystopian future where everyone rents except for the lucky souls that inherit the family property.
Houses are held as investments because homes are good investments. Homes are good investments because supply is too low
That’s… A truly remarkable perspective lol. I just told you that the supply is artificially constricted to inflate prices and gouge profit, and your response is “that’s what makes it good.”
What’s next, investment groups buying up a significant percentage of non-perishable foods if it’ll make “good investments because supply is too low”? Basic necessities of life shouldn’t be investments because supply and demand aren’t really relevant when you need something. It’s just extortion with extra steps.
A huge portion of the population is choosing not to have kids because houses are too expensive, and even if they manage to get one, raising a family on top of that is too expensive. When investments are negatively impacting the entire population of a country, that’s a bad thing.
I never said it was good. Homes shouldn’t be investments. Ideally, they’d depreciate in value without renovation.
The reason they appreciate in value is we don’t build enough.
Yes, though you did just call them good investments. An investment being good solely because the market is an anti-consumer purgatory isn’t a good investment. The moment the housing market is fixed the investment collapses back to being driven by property location instead of the simple fact that its exists. Not to mention concerns about another housing market crash or recession waiting in the wings.
Homes should depreciate in value, similar to cars, and imagine what would happen if car manufacturers decided they liked the Covid price points and supply constriction, and started treating them like the housing market? There’s more money to be made in ensuring there isn’t enough supply than there is in meeting demand.
I can recognize the reality of a good investment while disagreeing that it should be a good investment.
People aren’t building because they are choosing not to. They’re not building because they literally can’t.
Probably would have been worth clarifying that distinction earlier, but I’m not attacking families looking to pay for a home to be built. Construction companies that build new homes en masse are doing so to make money, not to address the housing shortage.
Much like Nissan being pleasantly surprised at making more money by discontinuing production of their cheaper models, larger construction companies aren’t at some sad loss to meet demand. they acquire building permits based on how many months of completed housing supply they have waiting to be purchased. When it passes a certain level, apparently 6 months of supply, they slow down completions and reduce the number of new permits until the supply is sold at the prices they want.
Otherwise it would be less profitable. I’m not saying there aren’t other issues, and smaller home building outfits struggle with local permitting, keeping employees, and rising prices for materials and appliances. But a huge issue with the industry is that it’s fundamentally against their best interest to solve the housing shortage. There’s a happy little feedback loop between builders and investors that keeps pumping home prices up, which lets new ones be sold for more, which pumps home prices up. Which restricts more and more of the housing market to investors, until the dystopian future where everyone rents except for the lucky souls that inherit the family property.
It is not against anyone’s interest to build housing and you’re making a lot of frankly absurd claims here, specifically just to villainize people.
Highly recommend you look up criticisms of SFH zoning policy