Unleash the powers of unlimited credit and excess capital on a limited, essential resource such as shelter and this is what we end up with: artificial scarcity, rent-serfs and half-vacant neighborhoods owned by absentee landlords.
Ideologies sound wonderful in the abstract, but run aground in the granular real world. The dominate ideology in the world today isn’t a political ideology, it’s the ideology of the market: in this ideology, the market is presented as the ideal problem-solving mechanism, as the interplay of supply and demand and the free flow of capital and labor will automatically fill unmet demand with new supply and provide competition that increases quality and reduces costs.
Let’s consider how the market functions in the real-world U.S. housing market. Take a mixed-use neighborhood of single-family homes with a scattering of low-rise rental buildings. It’s desirable but still affordable to buyers and renters alike.
Enter the bubble economy, the global model for the past 30 years in which unlimited credit is dirt-cheap to corporations and financiers as central banks suppress interest rates to “bring demand forward” by making it cheaper to borrow money to buy assets and products.
This pumps up asset prices as low-cost capital sloshes around the world looking for low-risk cash flows to buy and places to park excess capital that will appreciate as global capital competes for the lowest-risk, most desirable assets.
Real estate in desirable, low-risk locales is an ideal place to park this excess capital. Global capital has no need to rent the flats and homes being snapped up for appreciation; indeed, renting the flats and homes is viewed as troublesome and not worth the hassle.
So global absentee owners start buying properties in the desirable neighborhood. These buyers have zero interest in the livability of the neighborhood or the residents; it’s strictly an investment based on the Prime Directive: maximize the return on capital by any means available.
Salisbury is Unaffordable !! $1800.00 mo Rent / More for Mortages !!! Jobs here don’t pay that !!!
Try that on $ 14 hr !!! Not Happening !!
Salisbury is Unaffordable !! $1800.00 mo Rent / More for Mortgages !!! Jobs here don’t pay that !!!
All of the blue states get government handouts that nobody knows about. It’s all going to help the illegals. These landlords get kickbacks from the govt to house them and so do the states. This is what you get when you vote democrat. Biden and his cronies hate this country. Everything they’ve done is to destroy this country. Ask yourself are you living better off now or before Biden got in. When democrats take power everything turns to shit.
Americans living in the street > while our Crooked Govt puts up ILLEGALS in New Housing !!!!!! Rent FREE
for Two Years & EBT cards / Cash !!!!!!
Even in the Veteran’s Hospital Illegals put AHEAD of our Veterans !!!!! CRIME
When will the GOVT Learn > ILLEGAL MEANS ILLEGAL !!!!! Not OPTIONAL !!!!!
WHEn does GOVT get Held Accountable to the LAW ?????
WHEN does the President get held Accountable to the SUPREME COURT !!! ????