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Re:Supply Constraints Do Not Explain House Price, Quantity G... by wan23 on Thursday March 20, 2025 @10:15AM (#43423850)
If you only do something about homes priced higher than $1M it won't solve the problem that no one can afford a starter home any more.
Re:Supply Constraints Do Not Explain House Price, Quantity G... by vannevar on Thursday March 20, 2025 @01:42PM (#43426364)
It's not about the individual homes, it's about the aggregate holdings. If people with large asset portfolios (and corresponding large incomes) stop buying homes because they have an incremental carrying cost to them due to taxes, the prices will drop for everyone. The problem we have now is that big PE firms are buying up single-family homes because they have the massive incomes to out-compete everyone else in the market. They then turn around and lease those homes to increase their income even more.