The US needs to make housing affordable – and affordable


Home changes

Some summer, though, the driving distance ends. I spent the last six weeks in the suburbs of Sullivan, a picturesque hill station in the Catskill Mountains about two hours from New York City. Poverty groups make up about 25% of all governments, according to the latest statistics. The average person earns just $ 31,000, $ 5,000 less than the rest of the world.

And property prices in Sullivan County rose by 32.8% year-on-year in July. Small wooden houses that could have cost $ 200,000 or less before the plague turned into a double whammy (or rent at retail hotel prices). All donations and see what doesn’t look like are common. The Borscht Belt, formerly known as the Jewish holiday resort from the 1920s to the 1970s, has not been very hot since Eddie Fisher and Liz Taylor lived there.

One of these is the Covid madness, and some of it disappears. But the Borscht Belt boom is on display in many parts of the country, and it points out that, for more than a decade since the subprime meltdown, housing is still in the middle of the American economic divide. This is because in the US, homes are very expensive because they are residential.

Just as traders managed their economic crisis ahead of time, they also contributed to the rise in house prices, which came in the fall of 2008. Advertisers bought one in six homes in the U.S. in the second quarter of 2021, according to Redfin.

This is not the case with large corporations, although many financial companies took the place at a lower price during the first phase of the epidemic, just as they bought homes that were taken to court due to the financial crisis. The call, which Blackstone initiated and floated, became the country’s largest landlord. More recently, secret societies have set up multi-family lending centers as well as mobile homes, which are suspended by government loans designed to help the poor.

Some of the real estate agents are people from a wealthy city who have bought or rented a home for rent or lease. But both as well as corporations have benefited greatly from lower interest rates and lower interest rates, not since the plague began, but since the economic crisis. Central banking policies have strengthened stocks and domestic prices. But it has also disrupted many real estate markets where locals want high-income city dwellers to find housing.

This also exacerbates post-Covid unemployment which is hurting U.S. businesses in areas such as travel, tourism, retail and other areas of employment. Suddenly, the Catskills became like Aspen – if you had to work there, you probably would not be able to stay there. I can’t tell you the “closed: useless” signs that I saw when I was there.

This pressure will reduce slightly when government benefits run out and children go back to school, releasing female employees mainly to work. It is unknown at this time whether the new cities will be reopened within two or three hours.

But bifurcation in the housing market will remain with us forever, unless the paradigm changes. A simple fiscal policy raises the prices of goods, but does not lead to a growth in acceptance that allows people to spend money and benefit from the measure. Lack of housing can be hampered by everything from prices to low housing and the need for land reform in major markets to the lack of Covid-related items. That is why even if the central banks do change the currency, it can take a while for the bubble to explode.

Finally, we need to build affordable and affordable housing. The White House has just announced the best ways to increase the availability of affordable housing by making more money for home buyers. In the past they have been unable to borrow large sums of money because their homes, which are pre-arranged and sent to home parks, are considered “chattel”, like boats or cars.

But research shows that these homes can be just as profitable as any other home, especially if they exist as part of a proprietary company, where citizens are encouraged to renovate common property, and can share the risk. I also have an idea for Biden to reduce the sale of certain assets to the Federal Housing Administration and the Department of Housing and Urban Development. The programs were set up to help families, without having to pay for confidential money.

We can also test ideas as house prices that change depending on how the economy alone performs. If unemployment rises, growth decreases or house prices change dramatically, money can change accordingly. This is an idea that has always been enforced by economist Robert Shiller, and may allow for equal sharing between financial institutions and lenders.

No one wants a repeat of 2008. We want a housing policy that makes a home the way it should be: shelter.

rana.foroohar@ft.com



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