Comment on Listening to NPR news about mortgages

Veedem@lemmy.world ⁨1⁩ ⁨day⁩ ago

Mortgage rates coming down is not the answer. It’ll only drive up demand while supply stays the same. There is a major need for more supply. People will reply with the number of vacant units, but vacancy is a broad measure that ignores things like a house currently being sold and going through the closing process.

The country, as a whole, needs something like 6.5 million more housing units to meet demand at which point prices would come down.

It’s unfortunately not going to happen without government (local or federal) intervention.

This Freakonomics episode focuses more on rentals but the basic concepts are the same:

freakonomics.com/…/why-rent-control-doesnt-work/

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