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by iandanforth
36 days ago
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Huge fan of zoning reform, however I'd love to see equal effort in lending reform. The availability of multi-million dollar mortgages on 30 year terms means that we all get poorer. Getting people into owned homes is a dream left over from the Clinton era that has warped into an ever expanding pool of debt and over sized buildings. Developers will build to the limit of what people can afford (and slightly beyond), and that is defined by mortgage policy. The harsh reality is that as long as you're supporting a system where a 1k sqft house can cost 300, 400, 500k you're not helping anyone who isn't in the business of lending. The only way to reverse the trend is to limit the pool of available capital and bring the sale value of property down. |
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How would you do this?
> and bring the sale value of property down
Can't happen without causing a lot of pain. In large part due to the debt. Holding prices flat in nominal terms is the best-case outcome; holding them flat in real terms the most likely one. Either, however, beats real appreciation.
(For what it's worth, I'm a homeowner with a jumbo mortgage.)