This idea that cities reach a point of maximum growth, become unaffordable, and should be abandoned by potential newcomers: this is currently true, but it's a broken system, and it's time we look at ways we can improve it. When a city becomes unaffordable, when rents skyrocket-- those expenses are someone else's windfalls. When people expect the value of real estate to rise and rise indefinitely-- those windfalls are…
I think Community Land Trusts are a great example of the sort of thing people should be looking into as an alternative to the current model. Don't see people talking about them much. The basic idea is that a nonprofit purchases the land in a community and holds it in perpetuity. It rents the land long-term to residents (and for the most part, they're required to be residents), instead of selling it. It's still possib…
I'm assuming that one would go to a land trust, sign a contract to rent a lot for $X/month for 99 years (or something similar).
Then you would build a house, probably get a construction mortgage to afford it. Then your monthly payments would be mortgage + $X.
Area becomes wildly attractive and people move in. Suddenly people are offering mortgage * 200% for your house, knowing they'll add $X to their money payment.
Housing still gets expensive. What am I missing?