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But if we do that now how will bankers and private equity buy their yachts!!!!!!??? Oh the humanity
This is straight up the problem. You cant reduce housing costs without reducing the price of houses. Individuals know this and reject housing development in their communities because they like to see line go up.
But if we want young people to ever be able to move out/buy a house, the price of houses has to fall.
The Republican strategy is to deport illegal immigrants and free up the housing they occupy, there by increasing supply and lowering demand.
The Democrat strategy is to build more low income housing and allow in anybody who wants to come here. Increasing supply slowly and increasing demand substantially.
Neither really push for a program to build low income housing and 1500sqft starter homes that are reasonably priced.
What is a starter home today is 2500sqft, and that is only because builders make more money on those than 1500sqft.
You forgot the increased subsidies for first time homebuyers in the democrat plan.
You are correct that neither party has proposed a solution that would help because neither party will admit that home prices need to fall, substancially.
Those subsidies are a fart in the wind against home prices inflated by artificial scarcity cause by passive income seekers and restrictive building codes that prevent low income and high density housing. It is like retailers giving a 10% discount for a week when they raise the prices 15%.
Such a weak and empty gesture to pander to voters. It is better than nothing, but that shouldn't be the bar they campaign on. Dems need to grow some teeth.
Absolutely. Subsidies just make the problem worse next election cycle.
I'd challenge the word "illegal" in the Republican strategy, but I'm with the spirit of your post.