Here in Vienna, Austria - we have A: free market real estate, where the developer and the contractor do what they want, within reason of permits. B: city owned & managed housing (developers and contractors go into a competition to realize a project for the city, needs to present a concept for economic viability, sustainability, architecture etc.).C: half subsidised housing; this is where you can rent or own for a reduced price but it is for you or your family to live in, you cannot just rent it out at market prices as an investor. D: Cooperatives where you will pay around 30k to get in, and then pay reduced rent, and may have an option to buyout after some X amount of years. All of these places are built throughout the city, there are no zones for one or the other. The mix reduces perception of income disparity, segregation. Another important side effect is that there is no social stigma attached to it. You have lawyers and whatnot living in them, the income limit is high. We consistently rank as one of the most livable cities in the world. While prices have gone up, you cannot compare it to Munich for example. This sort of systemic competition keeps the cost in check. Dense urban environments need careful planning and these sort of regulations. An attractive city will bring in people and businesses. That needs to be the goal. But it will always drive cost up to some extent, thats how markets work. A republican "free for all" may work in more rural areas, or some suburban environments... But not in Cities, depending on the project. If you leave everything to the free market you are going to get higher and higher prices. Be careful about the motivation of real estate agents, they want to maximize profit, and thats what all the builders want, so no, deregulation will not result in cheaper anything. Concerning taxes, while at first glance you might say, wow, austrians are drowning in taxes, well to an extent, BUT we dont have anuual property taxes. A property tax here is something you pay ONCE at time of purchase. In the USA that is an ongoing expense that any landlord will pass on to you. I can see the benefits of community and property taxes for all that well kept lawn/landscaping stuff america has, but it seems excessive, and without fair distribution on a wider area, you are going to have richt areas look rich and poor areas look poor. Anyway long story short HARRIS 2024! Dial the capitalism back from 11 to 9.5 and you can still make a fortune selling real estate. dont worry.
VA has a moratorium on foreclosures. From what I see, people are passing homes down to the next generation. Grown children are getting the rental homes to live in. Grown children are moving home with parents and waiting for them to die. My niece sold her home and moved back with parents. My 84 year old neighbors daughter moved home. My 78 year old neighbors son moved home. My daughter's cousin got Grandpas house last year. Her best friend got her aunts rental home. My daughter and her fiance live in his grandparents rental home. My two oldest children live in two of my rental homes. Demand is falling due to homes passing down. Why buy when you can get a home for free? Trump is progrowth. The stock market will definitely benefit. Lord help us if Kamala wins.
Thanks for your insight! Household formation has certainly changed and more generations are living together, young adults are staying with parents longer, etc. but I think that's an "effect" rather than a "cause" of the national housing shortage and the overall high cost of owning a home in today's market. Median wages in most markets (certainly ours) are lower than what is necessary to afford the median priced home at prevailing interest rates.
I love Lina khan❤🔥🙌🏿. Huuuge advocate for consumers Kamala better keep her💪🏿💪🏿 your partisan take was interesting. Good luck with the channel
Here in Vienna, Austria - we have A: free market real estate, where the developer and the contractor do what they want, within reason of permits. B: city owned & managed housing (developers and contractors go into a competition to realize a project for the city, needs to present a concept for economic viability, sustainability, architecture etc.).C: half subsidised housing; this is where you can rent or own for a reduced price but it is for you or your family to live in, you cannot just rent it out at market prices as an investor. D: Cooperatives where you will pay around 30k to get in, and then pay reduced rent, and may have an option to buyout after some X amount of years.
All of these places are built throughout the city, there are no zones for one or the other. The mix reduces perception of income disparity, segregation. Another important side effect is that there is no social stigma attached to it. You have lawyers and whatnot living in them, the income limit is high. We consistently rank as one of the most livable cities in the world. While prices have gone up, you cannot compare it to Munich for example. This sort of systemic competition keeps the cost in check.
Dense urban environments need careful planning and these sort of regulations. An attractive city will bring in people and businesses. That needs to be the goal. But it will always drive cost up to some extent, thats how markets work.
A republican "free for all" may work in more rural areas, or some suburban environments... But not in Cities, depending on the project. If you leave everything to the free market you are going to get higher and higher prices.
Be careful about the motivation of real estate agents, they want to maximize profit, and thats what all the builders want, so no, deregulation will not result in cheaper anything.
Concerning taxes, while at first glance you might say, wow, austrians are drowning in taxes, well to an extent, BUT we dont have anuual property taxes. A property tax here is something you pay ONCE at time of purchase.
In the USA that is an ongoing expense that any landlord will pass on to you. I can see the benefits of community and property taxes for all that well kept lawn/landscaping stuff america has, but it seems excessive, and without fair distribution on a wider area, you are going to have richt areas look rich and poor areas look poor.
Anyway long story short HARRIS 2024! Dial the capitalism back from 11 to 9.5 and you can still make a fortune selling real estate. dont worry.
Great information!!
Glad it was helpful!
What do y'all think of this episode and the future of the housing market?
Please put the mic a little further away.
Thanks for the feedback and for watching.
VA has a moratorium on foreclosures. From what I see, people are passing homes down to the next generation. Grown children are getting the rental homes to live in. Grown children are moving home with parents and waiting for them to die. My niece sold her home and moved back with parents. My 84 year old neighbors daughter moved home. My 78 year old neighbors son moved home. My daughter's cousin got Grandpas house last year. Her best friend got her aunts rental home. My daughter and her fiance live in his grandparents rental home. My two oldest children live in two of my rental homes. Demand is falling due to homes passing down. Why buy when you can get a home for free?
Trump is progrowth. The stock market will definitely benefit. Lord help us if Kamala wins.
Thanks for your insight! Household formation has certainly changed and more generations are living together, young adults are staying with parents longer, etc. but I think that's an "effect" rather than a "cause" of the national housing shortage and the overall high cost of owning a home in today's market. Median wages in most markets (certainly ours) are lower than what is necessary to afford the median priced home at prevailing interest rates.