Harris releases plan to lower housing costs

[Bill Gates]

https://nlihc.org/resource/harris-campaign-releases-plans-lower-housing-costs


First time home buyers will receive $25,000 as a down payment toward their home.

That is huge. Not sure how independents voters can ignore that.

[highwhey]

trump would never! but he'll ask you for donations to build a wall and never spend it on the actual border :oldlol:

[rmt]

$25k will just drive up the cost of housing - anything that government touches drives COST UP (see education, medical, etc.) Who's gonna pay for this and what will it do to inflation? So, all the "green" regulations are out? - no gas stoves, no solar panels, no electric charger, no...

What is needed is LESS regulations - there ain't ever been a regulation that Dems didn't like - it's all about CONTROL.

[j3lademaster]

It’s a smart political move. You can’t criticize it as a conservative without being a massive hypocrite because it promotes market competition, but at the end of the day it’s just more wealth tax cuts for real estate investors. I can see it lowering costs in less desirable cities, but something like the bay area or sf there are tons of empty houses and costs keep going up despite rising crime, causing more and more gentrification outside of town. The 25k is inherently harmful, there have been numerous studies and real world examples of prices going up when people have more access to loans and the like: student loans inflating tuition, the invention of the mortgage loan, hell we can go back to renaissance europe to business loans given out by the Medicis.

[Bill Gates]

$25k will just drive up the cost of housing - anything that government touches drives COST UP (see education, medical, etc.) Who's gonna pay for this and what will it do to inflation? So, all the "green" regulations are out? - no gas stoves, no solar panels, no electric charger, no...

What is needed is LESS regulations - there ain't ever been a regulation that Dems didn't like - it's all about CONTROL.
This isn't a regulation and I don't see why it would cause prices to go up. It's for first time buyers only.

I'm sure it would come in the form of a bill. Something like "The Affordable Home Act" and then if it passes, which it would, the Gov essentially just "prints it up".

As long as they only "print up" an extra 2% each year inflation should be good. And we are currently at a healthy inflation rate right now so they are ready to turn on the faucet again.

[Patrick Chewing]

This isn't a regulation and I don't see why it would cause prices to go up. It's for first time buyers only.

I'm sure it would come in the form of a bill. Something like "The Affordable Home Act" and then if it passes, which it would, the Gov essentially just "prints it up".

As long as they only "print up" an extra 2% each year inflation should be good. And we are currently at a healthy inflation rate right now so they are ready to turn on the faucet again.

If home sellers know that the government is giving home buyers $25K to put down towards the purchase of a house, then of course home sellers would be inclined to raise their prices.

[Bill Gates]

If home sellers know that the government is giving home buyers $25K to put down towards the purchase of a house, then of course home sellers would be inclined to raise their prices.
Yeah that wouldn't work here, the market is dead and prices are topped out. No one is selling or buying. It needs to be kick-started, hence this incentive.

If anything we are on the verge of a housing market collapse.

[highwhey]

Yeah that wouldn't work here, the market is dead and prices are topped out. No one is selling or buying. It needs to be kick-started, hence this incentive.

If anything we are on the verge of a housing market collapse.

patrick lives in his mom's basement (he's 42 years old) so don't expect him to know much about the real estate industry.

[Hey Yo]

Yeah that wouldn't work here, the market is dead and prices are topped out. No one is selling or buying. It needs to be kick-started, hence this incentive.

If anything we are on the verge of a housing market collapse.
Complete retardation

[Bill Gates]

Complete retardation

https://www.redfin.com/news/home-sales-lowest-since-pandemic-2024/
Existing Home Sales, Pending Sales Fall to Lowest Level Since Pandemic


That article is just 1 week old

[Patrick Chewing]

Yeah that wouldn't work here, the market is dead and prices are topped out. No one is selling or buying. It needs to be kick-started, hence this incentive.

If anything we are on the verge of a housing market collapse.


Prices are topped out right now, but interest rates will continue to drop. And if you're giving people free money to put down towards a house, then the power goes back to the seller. Right now, despite rates being high, the buyer has the power. If houses aren't moving, I would make offers like crazy on a house I want, and then refinance at a later date once the rates drop.

[ArbitraryWater]

OP thinks price controls are good and is talking himself into Kamala having a chance lolol

[TheMan]

OP thinks price controls are good and is talking himself into Kamala having a chance lolol

So you're saying she has no chance? Do you know how the US Electoral College works even? She just needs to hold the historically reliable Democratic states that are for a reason called The Blue Wall States, that Biden won in 2020, Wisconsin, Michigan and Pennsylvania, and she wins, where she's leading rn BTW according to the polls...and she reaches 270, and becomes the next POTUS, she wouldn't even need Nevada (where she's up), nor North Carolina, Georgia and Arizona where it's very close but Trump is up right now. She definitely has "a chance". You probably know less about US elections than about the NFL :lol

[Dbrog]

These sort of things are such trap policies for the casual (and usually poor) voter. They see "free money" and basically will vote accordingly...same thing with the child tax credit significant increase (which both candidates want; was Trumps policy first). Sadly, like others in this thread are stating, all it does is increase costs across the board and misallocate our tax paid dollars. Harris economic policies would 100% cripple our economy, which is fortunately why I doubt they would pass.

That said, Trump is also a spender which is ultimately bad for us. He at least allocates it into areas that actually help the average person (despite what the media tells you). It was a big reason I liked RFK because he was the only candidate that was concerned about balancing the budget by cutting military spending, getting out of funding overseas wars, and restricting or cutting a bunch of government ran programs that are never audited for usefulness and are generally a huge waste of taxpayer dollars WHILE ALSO negatively impacting private market competition.

[j3lademaster]

OP thinks price controls are good and is talking himself into Kamala having a chance lolol

What part of her policy is suggesting price control? Why do you keep trying to participate in conversations you literally have zero knowledge about? And countries like Japan has successfully implemented price control on properties. Germany has price control on drugs, rent, and has extensive price stabilization for individual companies. Germany has a pretty thriving economy, no?

[Bill Gates]

Some of you champion capitalism which is fine, but you have to acknowledge it is not without flaws. By nature capitalism is designed to keep cost (salaries) as low as humanly possible and also squeeze as much out of us as humanly possible. Capitalism, and supply and demand, are the entire reason the housing market is where it's at currently. There is extreme demand and low supply thus driving the prices up to levels many can not reach. Especially young families trying to enter.

If you are going to complain about various solutions to these issues, you should give out your own better solutions too.

[j3lademaster]

Some of you champion capitalism which is fine, but you have to acknowledge it is not without flaws. By nature capitalism is designed to keep cost (salaries) as low as humanly possible and also squeeze as much out of us as humanly possible. Capitalism, and supply and demand, are the entire reason the housing market is where it's at currently. There is extreme demand and low supply thus driving the prices up to levels many can not reach. Especially young families trying to enter.

If you are going to complain about various solutions to these issues, you should give out your own better solutions too.

Sure thing. Historically, credits have been used to inflate/ pump up a market, in this case disguised as help for Gen Z first time home buyers, but it is putting that additional 25k directly in the pockets of companies such as blackrock when they inevitably buy from them. This is actually nefarious and intentional, and a pretty smart way to pander to the left and real estate moguls at the same time. I agree with helping gen Z, because that is meritocratic; the whole carrot on a stick approach is what drives society after all, and the failure of most concepts is that progress isn’t motivating and enabling the already wealthy; it’s motivating the up and coming to compete with established wealth. We can achieve this with tax credits and deterrents. Tax credits for first time buyers just means they pay less to Uncle Sam without enriching real estate investors which causes unfair competitive advantage. What do I mean by unfair advantage? Well, when one industry gets too much help from the govt they will invest and take over other industries and hurt competition in the market. If that happens naturally? Sure that’s a different convo, but our govt should never interfere and offer that unfair advantage. So we can create a deterrent tax for single family homes for under certain amounts of dollars. In Phoenix it’s probably homes under $1mil, in LA maybe homes under $2mil, in rural Kentucky under $6, a modest gun collection, and 3 of that guy’s sister-wife’s used panties, idk what they’re into at the Bible Belt. But homes under a certain price should be protected as an elastic good that can be predatory when used against the middle class. Something like exponentially rising property tax for every subsequent property you own; normal tax for you first house, maybe a 5% property tax hike for second, and it can go to like 2x for the third house and even higher after to deter people from hoarding them. Another thing that’s worked wonders in Japan is its zoning. They deem certain land can only have apartments or single family homes built on them so you aren’t competing with Northrop Grumman for land all the time.

Edit: I meant homes as an inelastic good, not elastic.

[Bill Gates]

Sure thing. Historically, credits have been used to inflate/ pump up a market, in this case disguised as help for Gen Z first time home buyers, but it is putting that additional 25k directly in the pockets of companies such as blackrock when they inevitably buy from them. This is actually nefarious and intentional, and a pretty smart way to pander to the left and real estate moguls at the same time. I agree with helping gen Z, because that is meritocratic; the whole carrot on a stick approach is what drives society after all, and the failure of most concepts is that progress isn’t motivating and enabling the already wealthy; it’s motivating the up and coming to compete with established wealth. We can achieve this with tax credits and deterrents. Tax credits for first time buyers just means they pay less to Uncle Sam without enriching real estate investors which causes unfair competitive advantage. What do I mean by unfair advantage? Well, when one industry gets too much help from the govt they will invest and take over other industries and hurt competition in the market. If that happens naturally? Sure that’s a different convo, but our govt should never interfere and offer that unfair advantage. So we can create a deterrent tax for single family homes for under certain amounts of dollars. In Phoenix it’s probably homes under $1mil, in LA maybe homes under $2mil, in rural Kentucky under $6, a modest gun collection, and 3 of that guy’s sister-wife’s used panties, idk what they’re into at the Bible Belt. But homes under a certain price should be protected as an elastic good that can be predatory when used against the middle class. Something like exponentially rising property tax for every subsequent property you own; normal tax for you first house, maybe a 5% property tax hike for second, and it can go to like 2x for the third house and even higher after to deter people from hoarding them. Another thing that’s worked wonders in Japan is its zoning. They deem certain land can only have apartments or single family homes built on them so you aren’t competing with Northrop Grumman for land all the time.

Edit: I meant homes as an inelastic good, not elastic.

Harris's plan also includes huge tax credits for first time buyers. The $25k is just part if it. She also wants to aid in the construction of 3 million more homes.

The fear that the mortgage industry will get too powerful and take over other industries is no where in sight right now. Do you know anyone in the mortgage industry? They are probably hanging on by a thread. That is the one sector that is hurting more than any other right now. Helping them out would just get them back to "normal" and then when that happens we can take our foot off the gas.

[BurningHammer]

https://nlihc.org/resource/harris-campaign-releases-plans-lower-housing-costs


First time home buyers will receive $25,000 as a down payment toward their home.

That is huge. Not sure how independents voters can ignore that.

There is a similar government deal in Ontario, Canada as well.

[rmt]

There is a similar government deal in Ontario, Canada as well.

Housing in Toronto, Canada is outrageously high. $25k, $50k would be nothing.

[Charlie Sheen]

Some of you champion capitalism which is fine, but you have to acknowledge it is not without flaws. By nature capitalism is designed to keep cost (salaries) as low as humanly possible and also squeeze as much out of us as humanly possible. Capitalism, and supply and demand, are the entire reason the housing market is where it's at currently. There is extreme demand and low supply thus driving the prices up to levels many can not reach. Especially young families trying to enter.

If you are going to complain about various solutions to these issues, you should give out your own better solutions too.

Where people want to live... near employment opportunities.

How will this increase supply anywhere that was not already building new housing?

The down payment assistance is luring new home buyers toward bad long term investments.

[rawimpact]

Anything that gets subsidized gets inflated.

Take a look at used EV vehicle prices... once the 4K credit came in, dealers are now advertising prices in the KBB range WITH the discount...
Same can be said about subsidized non-guaranteed/unbacked student loans --- it allows Universities to get away with huge tuition increases because students are dumb enough to agree to ridiculous tuition rates because they are preapproved.

[Overdrive]

Anything that gets subsidized gets inflated.

Take a look at used EV vehicle prices... once the 4K credit came in, dealers are now advertising prices in the KBB range WITH the discount...
Same can be said about subsidized non-guaranteed/unbacked student loans --- it allows Universities to get away with huge tuition increases because students are dumb enough to agree to ridiculous tuition rates because they are preapproved.

Basically this. Said this in another thread. Giving money/breaks/aid will just lead to higher prices, when you don't regulate the seller side aswell.

[Bill Gates]

Those are pretty different situations

1. EV/students is all buyers, this is only first time buyers which is a small % of the market. Existing home owners get nothing

2. Unlike auto makers and Universities, the mortgage industry is in turmoil and needs to be stimulated

[Norcaliblunt]

They could just eliminate and abolish the sins of usury and property tax.

But naw they’ll give you 25,000 dollars that will end up just going back to the bank or government. Lmao.

[Bill Gates]

Where people want to live... near employment opportunities.

How will this increase supply anywhere that was not already building new housing?

The down payment assistance is luring new home buyers toward bad long term investments.

Unrelated to what is the OP, but a lot of cities are now converting unused retail space into apartment buildings. Shopping malls that have become ghosted into apartments. Retail is continuing to die.

[rawimpact]

Those are pretty different situations

1. EV/students is all buyers, this is only first time buyers which is a small % of the market. Existing home owners get nothing

2. Unlike auto makers and Universities, the mortgage industry is in turmoil and needs to be stimulated

Are you dumb?

1 out of 3 home sales are first time buyers... so it effects a lot of people. No existing home owners get nothing, but they markup the price because prices follow supply and demand. The demand would just go up because essentially 1 out of 3 buyers just saw an extra 25K... so prices (set by the seller) go up as well. As i type this shit out i'm thinking why the f do I have to explain this elementary shit to a troll.

Stimulate the mortgage industry? Dude... i dont even want to start with this BS.

[rawimpact]

They could just eliminate and abolish the sins of usury and property tax.

But naw they’ll give you 25,000 dollars that will end up just going back to the bank or government. Lmao.

The federal government giving one 25K does not mean they will get any of your property tax money. The federal government does not impose a property tax nor are they suggesting so. Property tax goes to your local government. If you owned a home you'd know that... that's why local politics matter.

[Norcaliblunt]

The federal government giving one 25K does not mean they will get any of your property tax money. The federal government does not impose a property tax nor are they suggesting so. Property tax goes to your local government. If you owned a home you'd know that... that's why local politics matter.

Can you read? Where in my post did I say “federal government”?

Government is government. A bank is a bank. And like business as usual that 25000 is gonna end up in both of those.

[Bill Gates]

Are you dumb?

1 out of 3 home sales are first time buyers... so it effects a lot of people. No existing home owners get nothing, but they markup the price because prices follow supply and demand. The demand would just go up because essentially 1 out of 3 buyers just saw an extra 25K... so prices (set by the seller) go up as well. As i type this shit out i'm thinking why the f do I have to explain this elementary shit to a troll.

Stimulate the mortgage industry? Dude... i dont even want to start with this BS.

Are you dumb? You know that 1/3 is much lower than 3/3 right? :oldlol:

Aside from that new buyers are singled out to cheap starter homes.

You're a home owner right? I own several. THE MARKET IS MAXXXXED OUT. We are on the verge of another housing collapse and the mortgage industry is about to sink. So yes it needs to be rejuvenated.

[rmt]

Are you dumb? You know that 1/3 is much lower than 3/3 right? :oldlol:

Aside from that new buyers are singled out to cheap starter homes.

You're a home owner right? I own several. THE MARKET IS MAXXXXED OUT. We are on the verge of another housing collapse and the mortgage industry is about to sink. So yes it needs to be rejuvenated.

There is less supply of housing than the demand. The sellers will raise their price $25k and sell to the first time buyers. The (potential) buyers moving from another area/state, upsizing (growing families) or downsizing (seniors) will be left with whatever available housing that has also been raised by $25k.

[Charlie Sheen]

Unrelated to what is the OP, but a lot of cities are now converting unused retail space into apartment buildings. Shopping malls that have become ghosted into apartments. Retail is continuing to die.

In California it is a complex issue. One of the more popular discussions centers around prop 13 squeezing local governments. Argument is... residential units are not being built on any meaningful scale because the property tax revenue will not fund the increased spending for public services

https://i.postimg.cc/Wbs86cFW/prop.png

People like to poke fun at Detroit but California has seen bankruptcies at the local level in San Bernardino and Stockton in the last 10 years.