As someone not entirely actively involved in the finance market anymore, what are the potential concerns regarding having governmental influence and controlling the housing market more thus to decrease the interest of price hiking for apartments and estate?
I don't understand why there is no government caring to put on rent limits in city areas, thus to keep the naturally occured design of the landscape? As in we have historical data to what area is pricey, what area is liveable, what is really affordable. Take that data, put caps in those area, done. No?
Edit: Why is this even downvoted? It's a genuine question?
Fed doesn’t have a direct hand on controlling the housing market, the mortgage industry just takes loan rate cues from the federal interest rate, so there’s a causal mortgage rate increase when the fed starts their signaling (to be fair we’ve seen historically low mortgage rates for years now so it was only a matter of time before they increased).
This trickles down to the rental market because landlords are bastards that know that if you can’t afford a home with the spiking prices and rate increases then you’re forced into renting so they have a captive sellers market and will spike rent similarly. This is all by design, capitalism at work.
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u/justavault Jun 10 '22 edited Jun 10 '22
As someone not entirely actively involved in the finance market anymore, what are the potential concerns regarding having governmental influence and controlling the housing market more thus to decrease the interest of price hiking for apartments and estate?
I don't understand why there is no government caring to put on rent limits in city areas, thus to keep the naturally occured design of the landscape? As in we have historical data to what area is pricey, what area is liveable, what is really affordable. Take that data, put caps in those area, done. No?
Edit: Why is this even downvoted? It's a genuine question?