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That would be increased unit supply and still create downward price pressure on units, doubling the density thereby doubling the units makes the land is less valuable if you need less of it to build a structure
Density is still a local thing generally since there's roads/parking/water/sewage/power to consider, can't imagine that working at scale.
Character is a factor too yea that would really crater land/home values, if my neighbors cattle pasture all of a sudden became a subdivision I would be incentivized to buy a bigger parcel of my own somewhere else. That'd lower the value of my current house further, both by unit, and the desirability of the land underneath it.
He seems to be focused on the mortgage scam, using Fanny/Freddy and Treasury policy to let buyers (exit liquidity) in.
Yeh the mortgage approach is dumb. Just another demand subsidy not coupled to any supply increases.
In any case, if it's coming down to local zoning issues, I don't see how the federal gov't can really influence that other than to threaten to withhold federal grants to states who don't force cities to change their zoning laws.
I think that's the correct approach, there's not a true supply issue, and there's only so much pre-empting of local issues you can do and not crater prices.
Keeping prices flat is already a good first step, we've chopped for a few years now already so wages can start to catch up.
Net-negative migration is also unlocking supply.
Also jawboning and flat prices will shake out a lot of speculative demand to unlock more supply, combine with boomers downsizing, existing supply can transfer.
I also suspect things like Florida are doing to gain more traction elsewhere, maybe with a federal nudge... really big homestead exemptions that let property taxes punish investment units but not single-families. Good for Bitcoin if this happens, better to hold coin than pay property taxes that are likely to go up on houses you don't live in.
Not necessarily. If he forces neighborhoods to allow more density, it instantly increases the value of any plot of land that previously held a single family home but now can hold enough condo units for 6 families.
A lot of homeowners still wouldn't be happy, since they want to be able to control the "character" of their neighborhood---but the increase in land value will at least make that pill easier to swallow.