Revaluation Of The Real Estate Sector Would Be Key To Social Stability \ stacker news ~econ

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Revaluation Of The Real Estate Sector Would Be Key To Social Stability

1145 sats \ 18 comments \ @TomK 3 Sep econ

The accelerated-expansionary monetary policy of recent decades has made the most important social good in our society unaffordable for the majority of people: home ownership! The massive debt policy pursued by the states in order to buy the goodwill of voters with the money printer through supposedly social initiatives is now having a fast growing and destructive effect when it comes to people realizing the dream of home ownership.

Once set in motion, the lending banks in particular cannot afford for these properties to significantly lose value and thus become more affordable again for potential buyers. Shrinking balance sheets also mean problems with refinancing these institutions, which is why politicians and central banks are keen to keep inflating the real estate bubble.

A terrible and destructive development. It is high time that this monetary premium over the utility value of homes flows into real savings vehicles such as Bitcoin or Gold. This is social justice, it would be responsible policy to open up the widest possible channels to make this happen.

https://m.stacker.news/49666

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319 sats \ 1 reply \ @Undisciplined 3 Sep

The other issue is that property tax revenues depend on high home prices, so even local governments have an incentive to keep these prices artificially high. "Affordable housing" programs are always going to be in the form of subsidies, because that's how you keep this racket going.

43 sats \ 0 replies \ @kepford 3 Sep

Those quotes are required. If there were a real desire to fix the housing issues in the US we would see some radical changes. The incentives are not aligned as you pointed out.

10 sats \ 0 replies \ @rebel_nomad 4 Sep

Well, if the state knows where you reside, are you really safe in this environment?

I'd go long anything supporting mobility if I had not left the whole fiat fuckup far behind...

57 sats \ 7 replies \ @kepford 3 Sep

Your post reminded me of this story I shared a few minutes ago. Commercial real estate is not finished being corrected. It may take many years for that to happen but it will happen. I just wonder how long until companies start dumping their nearly empty office spaces. We have seen the impact in places like NYC and SF but I don't think its over.

123 sats \ 4 replies \ @Undisciplined 3 Sep

They're likely going to dump it as soon as their current contracts are up. It's also not just companies. A lot of the government workforce went remote during the pandemic and has remained that way, which led to an enormous amount of empty office space.

Both government and businesses with surplus office space have been scrambling to sublet and repurpose those spaces, because they're taking enormous budget hits every month.

59 sats \ 0 replies \ @kepford 3 Sep

Exactly. Kinda blows my mind we haven't seen more from this already.

38 sats \ 2 replies \ @Bell_curve 4 Sep

Are they permanently remote now?

I thought most were returning to the office, at least part time in the office

51 sats \ 1 reply \ @kepford 4 Sep

Here's the deal. Many companies have made bold declarations about coming back to the office. Some are taking a hard line on it but many have folded to their employee's desire to work from home.

68 sats \ 0 replies \ @Undisciplined 4 Sep

I can only really speak to what's going on with government economists, since I don't know anyone else who works for the government.

At least one agency in DC is making them go back to the office. Ironically, the agency I heard about had already gotten out of it's office lease, so they had to move into vacant office space well outside the city.

I know of at least one other agency that's remaining remote, while continuing to pay for an enormous amount of unused office space.

21 sats \ 1 reply \ @SimpleStacker 3 Sep

It might not correct if the government decides to dump money into propping up the valuations.

0 sats \ 0 replies \ @Bell_curve 4 Sep

Property tax is local (city and county)

California has capital gains tax, which is lame at the state level. Lame at the federal level too

89 sats \ 0 replies \ @travis 3 Sep

https://m.stacker.news/49688

47 sats \ 1 reply \ @Butterfinger 3 Sep

Bitcoin fixes this, it will be huge when people stop using real estate as saving instruments, the demonatization will drive bitcoin to the moon and real estate will have an epic crash

21 sats \ 0 replies \ @TomK OP 4 Sep

It's in the making. Look at fertility rates

47 sats \ 1 reply \ @Satoshi__Nakamoto 3 Sep

I don't think so Real estate sector have been increasing as always in our country we have get social stability though

21 sats \ 0 replies \ @TomK OP 4 Sep

In Europe populations are in decline. This market will enter into secular decline too

42 sats \ 1 reply \ @SatsMate 4 Sep

You know the saddest part about all of this is here in Arizona we have 10s of thousands of homes sitting completely vacant, nobody in them (either listed or just empty), and we have a huge homeless crisis.

Because of the distortions created by central banks people are not moving up in homes, creating a barrier to entry for those on the streets trying to get an entry level place.

0 sats \ 0 replies \ @Bell_curve 4 Sep

Are these vacant foreclosures?