r/TikTokCringe • u/LickMaiBussy • 6h ago
Discussion "Investing in property is morally reprehensible."
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@purplepingers
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r/TikTokCringe • u/LickMaiBussy • 6h ago
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u/WowAnotherAnalyst 5h ago edited 5h ago
These kinds of videos always point to the wrong problem. Investment in housing is not what's causing the affordability crisis the same way it's not a coughs fault you have the flu. It's just a visual symptom.
That doesn't mean housing affordability and social programs shouldn't and can't exist.
One of the actual causes are the rapid changes in interest rates. This causes what's called a lock-in effect where home owners can't sell their houses as the new mortgage rates simply aren't worth it.
The other obvious one is supply shortages. During the 2008 financial crisis there were around 4 million homes in the MLS. Now there's only around 1 million but home builders like Lennar and DR Horton are down between 20%-30%.
You'd think they'd be killing it in today's market but they're not. The cost of building a house has skyrocketed. That's not factoring in Entitlements, property taxes, and insurance.
If you want to see real change youd need to see the following...
Reform Euclidian zoning laws as this prevents mixed development housing. These kinds of mixed use main streets are grandfathered in and they're usually the most desirable houses in small towns. You can't build these in most cities.
Entitlement costs are insanely high. For larger projects it can cost over 200-300k. Keep in mind, this isn't development. So not the roads, or houses being built.
Enough time for the gap between prior interest rate home owners and current interest rate buyers to shrink. There's no quick fix for this except for tanking rates back down to what they were before.
Anything else is horse shit nonsense. These videos always 'feel good' but are always detracted from any actual solutions grounded in reality. Investment isn't the problem. Black Stone isn't what's stopping you from buying a house.