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A comment on The Fed now owns nearly 1/3 of all U.S. mortgages. Parent comment

Re:The Fed now owns nearly 1/3 of all U.S. mortgages by oppenh3imer on Wednesday September 09, 2020 @10:13AM (#24421166)
If the price of the house rises faster than inflation, it is a good investment. However, rising faster than inflation also means that they become proportionally less affordable over time. You cannot have both affordable housing and high returns from housing
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Re:The Fed now owns nearly 1/3 of all U.S. mortgages by dragonwriter on Wednesday September 09, 2020 @10:16AM (#24421205)
> You cannot have both affordable housing and high returns from housing

Sure, you can, but only if real estate in established neighborhoods is more expensive than housing in new neighborhoods, which isn't hyperlocally sustainable but might be sustainable over a broader region.

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Re:The Fed now owns nearly 1/3 of all U.S. mortgages by thebean11 on Wednesday September 09, 2020 @10:18AM (#24421237)
You sort of can, but it requires increasing density (so per square foot stays similar but those with low incomes can still afford a small place) or older neighborhoods becoming more expensive than newer neighborhoods (happens all the time).
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Re:The Fed now owns nearly 1/3 of all U.S. mortgages by egsmi on Wednesday September 09, 2020 @11:51AM (#24422318)
Increasing density likely implies displacing the people presently in the expensive neighborhood for construction. In the U.S. anyway, that’s easier said than done. So that’s definitely a theoretical solution but I’m not sure how practical it is.
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Re:The Fed now owns nearly 1/3 of all U.S. mortgages by thebean11 on Wednesday September 09, 2020 @11:54AM (#24422348)
Displacing sure, but it's almost always voluntary! Zoning rules change, and developers start offering the big bucks for existing homeowners to sell.

It's starting to happen in Austin: duplexes/fourplexes are getting built in some of the nicer, more central areas.

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Re:The Fed now owns nearly 1/3 of all U.S. mortgages by adamredwoods on Wednesday September 09, 2020 @12:33PM (#24422758)
Also, inflation causes the value of debt to decrease over time. (Wages are sticky, but when they catch up, inflation causes debt to go down as the value of currency decreases.)
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