Social War Room Lounge Thread #325: PotWR Edition

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Islam Imamate said:
Unless the state decides to upzone which California did in 2021 and which more states are looking into. Better to go over the heads of local NIMBYs and go straight to the state capital for real reform.
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I disagree, as that is more authoritarian than I care for. But, as an authoritarian yourself, I see why you find it appealing.
 
Rob Battisti said:
Authoritarianism is when a larger government institution overrules the will of a smaller institution. There are obvious acceptable parameters here, but this is one where I would say crosses the line.
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Authoritarianism is when you change zoning laws, good to know.
 
Yehudim said:
Democracy is when you use your vote to restrict opportunities for other people who aren’t already in the club (I am not joking)
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No one said democracy was perfect. But, yes. That is democracy.
 
LangfordBarrow said:
If we're just talking about affordability allowing communities to zone themselves is going to increase prices.
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Clearly, any homeowner is going to want the property to always increase in value, and not want any measure which could directly interfere with that. I'm not sure why multi-unit housing on another piece of land nearby would affect that though. Perhaps the thinking is that the poors down the street would make your own home less desirable to future prospective buyers but I'd say that makes you an ass.

Islam Imamate said:
I think it's extreme to limit people's property rights to that extent and it explains why housing is so unaffordable right now.
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I agree that NIMBY zoning is a contributing factor, but I don't think it's the only one or even the primary cause. I think @Mr Holmes touched upon the main issue with his comment about Airbnb's.

A person being interviewed on a CBC radio program the other day pointed out that when interest rates were low (when we bought our house in 2021 we locked into a 7-year term amortized over 25 years at 2.74%, for example, and I'm sure prior to that people got in even more cheaply) many people used the opportunity to purchase additional properties with the equity in their first home, not to mention rich people or groups of rich people snapping up properties all over the place. The resulting increase in demand and decrease in supply is, he asserted, the cause of the huge increases in home prices. But now that the value has increased, and with so many people still in the market to buy, prices are unlikely to be ameliorated by increased in inventory.

Around here, there are a lot more places for sale than when we bought our home but it doesn't seem to be affecting prices, or if it is, the amount is quite small, relative to the total cost.

See the link below,
 
Rob Battisti said:
That completely misses the point of what I said.

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What's the relevance of the video here?
Andy Capp said:
Clearly, any homeowner is going to want the property to always increase in value, and not want any measure which could directly interfere with that. I'm not sure why multi-unit housing on another piece of land nearby would affect that though. Perhaps the thinking is that the poors down the street would make your own home less desirable to future prospective buyers but I'd say that makes you an ass.


I agree that NIMBY zoning is a contributing factor, but I don't think it's the only one or even the primary cause. I think @Mr Holmes touched upon the main issue with his comment about Airbnb's.

A person being interviewed on a CBC radio program the other day pointed out that when interest rates were low (when we bought our house in 2021 we locked into a 7-year term amortized over 25 years at 2.74%, for example, and I'm sure prior to that people got in even more cheaply) many people used the opportunity to purchase additional properties with the equity in their first home, not to mention rich people or groups of rich people snapping up properties all over the place. The resulting increase in demand and decrease in supply is, he asserted, the cause of the huge increases in home prices. But now that the value has increased, and with so many people still in the market to buy, prices are unlikely to be ameliorated by increased in inventory.

Around here, there are a lot more places for sale than when we bought our home but it doesn't seem to be affecting prices, or if it is, the amount is quite small, relative to the total cost.

See the link below,
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A large part of the reason rental properties are so attractive as investments is because low supply means strong returns on investment and in fact investment firms openly talk about how constrained supply makes housing more attractive as an investment vehicle.

Make it easier to build housing, especially by converting existing single family home into multifamily ones, means that those looking to acquire a rental property might instead build one of their own on their own property rather than snatching another unit off the market. That reduces the barrier to entry into the rental market while making it easier to add units.
 
Islam Imamate said:
What's the relevance of the video here?

A large part of the reason rental properties are so attractive as investments is because low supply means strong returns on investment and in fact investment firms openly talk about how constrained supply makes housing more attractive as an investment vehicle.

Make it easier to build housing, especially by converting existing single family home into multifamily ones, means that those looking to acquire a rental property might instead build one of their own on their own property rather than snatching another unit off the market. That reduces the barrier to entry into the rental market while making it easier to add units.
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The video was interesting.

People invest in real estate because modern money is shit.
 
Rob Battisti said:
The video was interesting.

People invest in real estate because modern money is shit.
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Inflation is why people invest in general but real estate is uniquely attractive right now for investors now because of scarce supply.
 
Islam Imamate said:
Inflation is why people invest in general but real estate is uniquely attractive right now for investors now because of scarce supply.
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It’s always been attractive due to scarcity but it’s only getting worse. What did you think of the video?
 
Rob Battisti said:
It’s always been attractive due to scarcity but it’s only getting worse.
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Housing scarcity is getting worse which is why the solution is to build more housing.
Rob Battisti said:
What did you think of the video?
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It's a neat idea but I think it's silly to think it would make a serious difference absent zoning reform and more supply.
 
Islam Imamate said:
Housing scarcity is getting worse which is why the solution is to build more housing.

It's a neat idea but I think it's silly to think it would make a serious difference absent zoning reform and more supply.
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Maybe let’s just build more housing further from city centers and have them zoned however those communities see fit
 
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