bitflag@lemmy.worldtopolitics @lemmy.world•Harris to propose up to $25K in down-payment support for 1st-time homebuyers
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2 months agoThis actually makes houses more expensive, because now buyers have more money to outbid each other.
This actually makes houses more expensive, because now buyers have more money to outbid each other.
I learned the same lesson the same way 😞
The issue with housing is that the supply is limited. If you increase demand and not supply you just increase prices. Giving buyers $25k extra to spend means every home owner is now gonna jack up their selling price by $25k. This is, in the end, a subsidy for existing home-owners. Who already are doing pretty well, thank you very much.
Denying the existence of supply and demand always lead to policy failure. The way to address housing cost is to lower the cost of housing, not make housing more expensive by helping people outbid each others.