General Discussion
In reply to the discussion: Why not outlaw landlordism? [View all]Travis_0004
(5,417 posts)I own a house, but I took on a temp assignemnt with my company 4 hours away. I will be away for about 9 months. I rented a furnished house. What is your solution, stay in a hotel for 9 months? In this case I wanted to rent. To buy a house short term makes no sense.
Also, right now I can buy a nice house for 150k. That house can not be build for 150k. Probably 200k or more. Therefore new construction is down until housing price rise a bit more. There will always be people who will pay a premium for a new house, but for the most part when housing is cheap, construction is down.
Under your solution, prices will plumit (and I'll just walk away from my mortgage, buy a similar house and save 100k, but lets ignore that). With prices down, new construction grinds to a halt, which isn't good for the economy. Eventually prices will climb back up because of increased demand and almost no new construction. Eventually the cost of a house will equal somewahat close to the construction cost of a hosue, and we will be right back where we started.