President Donald Trump said during a Cabinet meeting that he wants to 'drive housing prices up' to keep homeowners 'wealthy' rather than focusing on affordability to benefit people people who 'didn't work very hard'
Go ahead, vote MAGA in the midterms if you’re curious how fucked your life can get.
It doesn’t help home owners, home buyers or even home sellers looking for a lateral move in a new area or an upgrade to a bigger or nicer home. In fact for the latter two, it ultimately hurts them. The people that it helps are those who are looking to downsize their home, move into a nursing home, or move in with their kids. i.e. people old enough to not have kids living with them anymore, retirees, etc. They can sell their 600k home they bought for 80k 40 years ago, pocket all of that or the difference if they buy a smaller home, and use it as a slush fund on top of their social security and 401k to take vacations.
Meanwhile, their home is bought as an investment property that people like their kids and grandkids will need to rent instead of own, spending more per month than a mortgage would be for the same home, especially as rent increases every year to keep up with the housing market (even though the only costs that go up for the landlord with the market increases is a marginal amount on taxes and cost to buy MORE investment properties), and with the renters gaining no equity for their rent dollars while their landlord profits off of that money instead.
Hell, not only would lower housing prices mean that more people could become homeowners, or means current homeowners could afford to get a bigger home for their family, or live closer to work, or get a nicer/newer home that isn’t a money pit.
Raising house prices ONLY benefits the elderly homeowner looking to sell and the landlords looking for more tenants and higher rents. Speaking as a homeowner, for the love of god, bring housing prices down.
It doesn’t help home owners, home buyers or even home sellers looking for a lateral move in a new area or an upgrade to a bigger or nicer home. In fact for the latter two, it ultimately hurts them. The people that it helps are those who are looking to downsize their home, move into a nursing home, or move in with their kids. i.e. people old enough to not have kids living with them anymore, retirees, etc. They can sell their 600k home they bought for 80k 40 years ago, pocket all of that or the difference if they buy a smaller home, and use it as a slush fund on top of their social security and 401k to take vacations.
Meanwhile, their home is bought as an investment property that people like their kids and grandkids will need to rent instead of own, spending more per month than a mortgage would be for the same home, especially as rent increases every year to keep up with the housing market (even though the only costs that go up for the landlord with the market increases is a marginal amount on taxes and cost to buy MORE investment properties), and with the renters gaining no equity for their rent dollars while their landlord profits off of that money instead.
Hell, not only would lower housing prices mean that more people could become homeowners, or means current homeowners could afford to get a bigger home for their family, or live closer to work, or get a nicer/newer home that isn’t a money pit.
Raising house prices ONLY benefits the elderly homeowner looking to sell and the landlords looking for more tenants and higher rents. Speaking as a homeowner, for the love of god, bring housing prices down.