Ask HN: Anyone else feels the commoditization of real estate is unethical?

Post by ethbr0 » Sat, Aug 13, 2022, 4:17 PM UTC

closedloop129 wrote: post #299

rojobuffalo wrote: post #257

Earlier quoted context omitted.

I would start by making property taxes substantially higher for non-owner-occupied property. If you are rent-seeking rather than residing on the property you should pay way more, maybe 4x or higher, in taxes. Housing prices would crash and that would be the point; but everyone who owns property would be against it because they don't want to see their assets drop in value. The counter-argument people make is "that wou…

It's counter-intuitive but the majority of housing has to be non-owner-occupied for prices to fall. >making property taxes substantially higher for non-owner-occupied property. >but everyone who owns property would be against it because they don't want to see their assets drop in value. After the initial dip, prices will rise again because residents will vote out every city government that tries to implement zoning t…

Post by carom » Sat, Aug 13, 2022, 4:20 PM UTC

elevatortrim wrote: post #374

badpun wrote: post #296

Earlier quoted context omitted.

Wouldn't that mostly just increase the rents? I.e. the landlords can offload the extra tax to their clients (renters).

That would be true if rent was a percentage on top of cost. But it is not, it is whatever maximum renters are willing to pay.

Post by ruined » Sat, Aug 13, 2022, 4:23 PM UTC

ethbr0 wrote: post #468

ItsMonkk wrote: post #424

Earlier quoted context omitted.

No. Renters are paying for the value of the land and the improvements. If the rental price of the apartment is above that, they won't pay it and find another place. If there are no places they will go homeless. Since landlords are already charging for this value, an increase of taxes does not increase the rents. > every property owner isn't going to operate at a loss So they will then sell. But who would buy at curre…

Well said and interesting. Part of the problem with change is that there are always negative effects somewhere , but the answer should be to address those negative effects... not to postpone change until a mythical no-negative version is found.

Post by carom » Sat, Aug 13, 2022, 4:23 PM UTC

rojobuffalo wrote: post #257

targ65 wrote: post #172

Like another comment here mentioned, housing is complicated. People don't want to live in a random house in the middle of nowhere ('roof over your head'). Some people prefer to be homeless on the street versus getting to a roof over their head that they don't like. People want to live where they want to live (near family, jobs, culture etc) Take NYC for instance. Politicians try to address the NYC housing crisis from…

I would start by making property taxes substantially higher for non-owner-occupied property. If you are rent-seeking rather than residing on the property you should pay way more, maybe 4x or higher, in taxes. Housing prices would crash and that would be the point; but everyone who owns property would be against it because they don't want to see their assets drop in value. The counter-argument people make is "that wou…

Post by [deleted] » Sat, Aug 13, 2022, 4:24 PM UTC

nrmitchi wrote: post #483

rojobuffalo wrote: post #459

Earlier quoted context omitted.

4x higher tax, not 4x total cost. First housing prices would crash, so rental prices would also drop. And they wouldn't go up 1:1 with tax increases. They would go up by some percentage which is fine. It should be a little more expensive month-to-month to rent vs. own. Renting should still be available, but a lower proportion of housing should be rentals.

“It should be more expensive month to month to rent vs own” It already is. There are many tax incentives geared towards making owning cheaper. If owning was t already subsidized do you really think anyone would be handing out 4% 30-yr fixed rate mortgages like candy? Removing these would also make housing prices crash, which would lower both purchase cost AND rent, yet I don’t see many people pushing that idea forwar…