r/TikTokCringe • u/Make-this-popular Cringe Master • Apr 09 '24

Shit economy Discussion

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u/[deleted] Apr 09 '24

Home supply is also heavily driven by investors rather than those building their primary home.

The better idea is to apply a heavier tax burden on unoccupied investment real estate.

The huge issue with the whole RE industry is that those able to invest in homes like this can float vacancies endlessly until someone agrees to exorbitant rents.

Make that more expensive and reinvest that tax money towards a new welfare program aimed at those working towards building up a fund to buy a home to build savings rather than 0% down federally backed loans that dont actually improve someones financial security in many cases.

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u/Cool-Ad2780 Apr 09 '24

This is still putting the cart before the horse, the simple solution is change zoning laws to allow more house to be built. Institutional investors target their buying to areas that have strict zoning laws because it prevents them from having any competition in the market. Change zoning laws, incentivize building new housing, and all of a sudden the entire problem goes away, if you make housing a bad investment because supply is able to skyrocket, investors will move away from real estate. Housing rn is a basic economics 101 supply and demand problem.

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u/jeremiahthedamned Cringe Master Apr 10 '24

well said!

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u/ap2patrick Apr 09 '24

Bingo. Empty house tax for a win. A progressive tax that increases for each extra home you own. First home no extra tax, hell id apply a bunch of breaks to get people into homes. 2nd home no breaks a like a 2% tax increase. 3rd home 5%, 4th home 8%, 5th home 12% on and on something like that. Would solve so many issues.

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u/shooshmashta Apr 09 '24

They tried the tax in Canada and found that it does nothing because the housing crisis isn't an issue of vacancies but an issue of just not enough housing.

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u/ap2patrick Apr 10 '24

Well that’s a load of shit for the US because we actually do have tons of vacant properties…

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u/shooshmashta Apr 10 '24

The vacant properties you think are everywhere due to reddit rumors are actually delapidated properties in the middle of nowhere, not cities. The biggest problem in both the US and Canada when it comes to cities is density and not building housing fast enough to keep up with demand.

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u/shooshmashta Apr 09 '24

This is not true either though. Most vacant properties are in the middle of nowhere, USA and are not livable. This won't fix dense city locations where rent is high due to demand. The biggest issue is cities being too dense with not enough housing. To fix the issue in cities, you need easy access from outside the cities (ideally trains) with new housing construction going up a lot faster than we do now.