Cost of Owning a Home Surges Above the Cost of Renting One
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Re: Cost of Owning a Home Surges Above the Cost of Renting One
#2"What changed? The most compelling theory holds that a mixture of rapid inflation and generous federal-tax policy encouraged homeowners to treat their house as an investment, providing a strong incentive to oppose new construction."
This is the reason existing home-owners oppose building apartments and townhouses nearby. High-density housing lowers the value of their home, which costs them money. It also tends to increase crime rates. It's difficult to persuade a home-owner that they should give up some of their home's value just so that others can benefit from a larger supply of affordable housing. What does the homeowner have to gain other than thanks?
Re: Cost of Owning a Home Surges Above the Cost of Renting One
#3"What changed? The most compelling theory holds that a mixture of rapid inflation and generous federal-tax policy encouraged homeowners to treat their house as an investment, providing a strong incentive to oppose new construction." This is the reason existing home-owners oppose building apartments and townhouses nearby. High-density housing lowers the value of their home, which costs them money. It also tends to inc…
> What does the homeowner have to gain other than thanks?
A functioning market?
Re: Cost of Owning a Home Surges Above the Cost of Renting One
#4"What changed? The most compelling theory holds that a mixture of rapid inflation and generous federal-tax policy encouraged homeowners to treat their house as an investment, providing a strong incentive to oppose new construction." This is the reason existing home-owners oppose building apartments and townhouses nearby. High-density housing lowers the value of their home, which costs them money. It also tends to inc…
Is there strong evidence available that increased density negatively affects nearby housing prices? In my experience density can lead to a place being more desirable (by virtue of hosting more highly desirable amenities) so while I can imagine the correlation suggested, I can also imagine the opposite being true.
Re: Cost of Owning a Home Surges Above the Cost of Renting One
#5Don't forget that the current cost of owning a house will be offset by the return of capital when the house is sold. You can only calculate the total cost of ownership after you have sold the asset.