So yes, being able to buy back our mortgage’s bonds at their market value may be a boon, but the fact that the Dane’s require at least 20% down for their system to work would be a nonstarter for so many people. Roughly 65% of Americans are living paycheck to paycheck. A small minority of people are going to have the ~$80,000 to required to put down on a $450,000 house. Ultimately, turning housing into such a profitable investment option has led us to this situation, as having fewer houses means the existing houses are worth more and will only increase in value, making it a much more attractive investment than building new housing en masse.
I doubt it’d fix the housing crisis here, but it would certainly help. I’m not sure how many people would warm up to it, though. A large part of our problem is that there isn’t any affordable housing. The fact the average house cost in 2023 was around $450,000 is insane, especially given the median income in the US was roughly $75,000 in 2022.
So yes, being able to buy back our mortgage’s bonds at their market value may be a boon, but the fact that the Dane’s require at least 20% down for their system to work would be a nonstarter for so many people. Roughly 65% of Americans are living paycheck to paycheck. A small minority of people are going to have the ~$80,000 to required to put down on a $450,000 house. Ultimately, turning housing into such a profitable investment option has led us to this situation, as having fewer houses means the existing houses are worth more and will only increase in value, making it a much more attractive investment than building new housing en masse.
The point of requiring 20% is to suppress demand, pushing prices down toward affordability.
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I’ve been found out! I didn’t read the article 😂
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