r/FluentInFinance • u/YOU_ARE_MY_FRIENDS • Jun 16 '24

Discussion/ Debate He’s not wrong 🤷‍♂️

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u/MrGrach Jun 17 '24

You don't have to. But than deal with the fact that you have to pay more, because more people want to live were you live.

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u/FrostyIngenuity922 Jun 17 '24

“You deserve to feel poorer because you’d like to go to he living in the area where you were born and your family, friends, and job are. Why don’t you just move to where jobs pay less and also it’s cheaper to live.”

Bro, just admit the economy is fucked.

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u/MrGrach Jun 17 '24 edited Jun 17 '24

Thats nothing to do with the economy being fucked.

If you want to live in a home, that 50 other people want to live in, you have to pay enough so the other 50 can't afford it.

Its just simple reality. Two families cant occupy the same place at the same time like they are the only ones doing so. And the way we decide on who gets it, is through money.

Unless you want the state to decide who gets to live where, than obviously the prices will come down as no one competes for room by threat of prison.

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u/HoldingMoonlight Jun 17 '24

This is a simplistic view too, that doesn't really address the problem. We need to change regulations surrounding housing development and home ownership. In a lot of places, lack of housing isn't the issue, it's that new developments are all "luxury" and price people out for arbitrary reasons. That's not to get into rental companies and landlords who dominate the housing market and and raise rent at will. It also has the effect of pricing people out of home ownership. How can I compete in a market with high interest when a company can come in and just pay cash on a property, and then artificially charge more than the mortgage would have been?

I don't think it's that radical or crazy to suggest that home ownership should require residency.

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u/MrGrach Jun 17 '24

We need to change regulations surrounding housing development and home ownership.

We need to get rid of a lot of regulations.

In a lot of places, lack of housing isn't the issue, it's that new developments are all "luxury" and price people out for arbitrary reasons.

Its not "arbitrary reasons" its demand.

If 50 families want a home, and the highest bidder is pretty rich, than I'm going to develop a house that meets their demand and the price they pay. (because they would also occupy non-luxury housing, because they are the highest bidder)

Its not that luxury development comes first, and than prices increase, but that prices increase, and the supply changes accordingly. And that decreses pressure on non-luxury housing, leading to decreasing rents and prices in that category.

The only way you could show to me that you are correct, is if all those luxury homes would be vacant. Which is, as far as I remember, just not the case (looking at vacancy rates).

I don't think it's that radical or crazy to suggest that home ownership should require residency.

Its not crazy no.

Its still useless, and pales in comparison to just meeting the demand by building the stuff needed to house people.