What happens when housing prices go down? • Hacker News Board

Re: What happens when housing prices go down?

#21

Post by newsclues » Mon, Jul 21, 2025, 1:42 PM UTC

Apreche wrote: post #13

The problem can not be solved by trying to manage supply or demand. We must ban the concept of the landlord entirely. https://www.theguardian.com/lifeandstyle/2024/mar/19/end-of-... A landlord gets a loan from a bank to develop a residential property. That loan is paid by the tenants who live in that property. At the end of the day, the landlord owns the property. This is fundamentally unjust. If the tenant paid off…

So you want the government to be the only landlord or does everyone get their own home from the government (if they can’t afford one)?

Re: What happens when housing prices go down?

#22

Post by indymike » Mon, Jul 21, 2025, 1:42 PM UTC

billy99k wrote: post #2

"If “build more” was going to bring prices down and stabilize the system, we wouldn’t be seeing these mixed signals." Where have we seen anything close to 'build more'? Regulations in many major cities have prevented building more for decades and I haven't seen any loosening of these regulations (they were only increased during the Biden administration). "Prices are softening. Delinquencies are rising. Builders are w…

> "If “build more” was going to bring prices down and stabilize the system, we wouldn’t be seeing these mixed signals."

Bringing prices down is usually a losing idea with existing asset holders. Even a financially strapped homeowner does not want the price of her/his home to go down. Politically, this is a complete non-starter. Also, appreciating home values serve as a very strong way to attract talent to a city.

> "Prices are softening. Delinquencies are rising. Builders are walking.

What do you expect. Why would a homeowner send 1-2 paychecks a month to pay interest into an investment that is losing value? Why would a builder start making an asset that will be worth less than when they started building?

Re: What happens when housing prices go down?

#23

Post by changoplatanero » Mon, Jul 21, 2025, 1:42 PM UTC

Apreche wrote: post #13

The problem can not be solved by trying to manage supply or demand. We must ban the concept of the landlord entirely. https://www.theguardian.com/lifeandstyle/2024/mar/19/end-of-... A landlord gets a loan from a bank to develop a residential property. That loan is paid by the tenants who live in that property. At the end of the day, the landlord owns the property. This is fundamentally unjust. If the tenant paid off…

> Can you imagine this for anything else?

You mean, like, cars?

Re: What happens when housing prices go down?

#24

Post by ragebol » Mon, Jul 21, 2025, 1:43 PM UTC

andrewstuart wrote: post #9

There’s no such thing as “demand” in housing. Only supply. Housing has its own economics in which supply is the only solution ever put forward. Not a single politician or economist ever says that most dreaded and awful word “demand”. Property developers, politicians, economists, demographers, real estate agents, landlords all agree that supply supply supply will …….. errrr it will…… ummmmmm more supply will definitel…

Demand can be affected by people living together, or encouraging that in some way.

Be it having roommates, elderly parents living in, staying with ones parents longer, communes. None of them popular long term I think. Hence: supply

Re: What happens when housing prices go down?

#25

Post by nemomarx » Mon, Jul 21, 2025, 1:43 PM UTC

andrewstuart wrote: post #9

There’s no such thing as “demand” in housing. Only supply. Housing has its own economics in which supply is the only solution ever put forward. Not a single politician or economist ever says that most dreaded and awful word “demand”. Property developers, politicians, economists, demographers, real estate agents, landlords all agree that supply supply supply will …….. errrr it will…… ummmmmm more supply will definitel…

I feel like we talk about demand a lot - Just in the form of first time home owner subsidies or etc. Subsidizing demand of course doesn't help the situation but I'm not sure how you sell reducing demand to the public exactly

Re: What happens when housing prices go down?

#26

Post by _heimdall » Mon, Jul 21, 2025, 1:43 PM UTC

blitzar wrote: post #16

> What Happens When Housing Prices Go Down? Government bails homeowners out and prices go back up.

At least in the US, the government could care less about bailing out homeowners.

Banks are another story, we'll bail them out all day but tax payers and homeowners are left holding the bag.

Re: What happens when housing prices go down?

#27

Post by ta1243 » Mon, Jul 21, 2025, 1:43 PM UTC

andrewstuart wrote: post #9

There’s no such thing as “demand” in housing. Only supply. Housing has its own economics in which supply is the only solution ever put forward. Not a single politician or economist ever says that most dreaded and awful word “demand”. Property developers, politicians, economists, demographers, real estate agents, landlords all agree that supply supply supply will …….. errrr it will…… ummmmmm more supply will definitel…

Are you saying that people routinely buy 5 or 6 houses to live in (thus excess demand)

Or are you saying the only reason houses are expensive is because people refuse to live in cars in high enough numbers?

What do you mean by demand?

Re: What happens when housing prices go down?

#28

Post by femiagbabiaka » Mon, Jul 21, 2025, 1:43 PM UTC

billy99k wrote: post #2

"If “build more” was going to bring prices down and stabilize the system, we wouldn’t be seeing these mixed signals." Where have we seen anything close to 'build more'? Regulations in many major cities have prevented building more for decades and I haven't seen any loosening of these regulations (they were only increased during the Biden administration). "Prices are softening. Delinquencies are rising. Builders are w…

I’ve never seen a comment that so reflects that the writer did not read the article as this. There are 3 or 4 examples quoted in TFA, all cited.

Re: What happens when housing prices go down?

#29

Post by freejazz » Mon, Jul 21, 2025, 1:43 PM UTC

billy99k wrote: post #2

"If “build more” was going to bring prices down and stabilize the system, we wouldn’t be seeing these mixed signals." Where have we seen anything close to 'build more'? Regulations in many major cities have prevented building more for decades and I haven't seen any loosening of these regulations (they were only increased during the Biden administration). "Prices are softening. Delinquencies are rising. Builders are w…

> prevented building more for decades

What planet do people live on? Go to any neighborhood in NYC and you are going to see tons of construction.

Re: What happens when housing prices go down?

#30

Post by pixl97 » Mon, Jul 21, 2025, 1:43 PM UTC

PretzelFisch wrote: post #12

kasey_junk wrote: post #4

Earlier quoted context omitted.

It’s not just regulation either. Housing companies are not building as much as they did prior to 2008, which had substantially the same regulatory environment in most places. The idea that we’ve started building enough to bring prices down is a non-starter.

Why would the builder want to build enough to let prices drop? They seem to play a lot of games to give buyers incentives that do not lower the sales price.

Well because they hold inventory. If homes didn't have a year long build pipeline with another 6 months+ holding for sale buffer they'd probably care a lot less. Otherwise a 10% drop in prices can lead to their bankruptcy.