The Dynamics of Housing Affordability Are Changing Rapidly
Few would deny that affordable housing is paramount for a thriving civilization and the problems that arise without it can cause regions or entire nations to go into economic decay, even crumble.
Of course, in the United States there is a bit of unrest in the housing sector, as builders find no buyers for new homes, thus have stopped building them.
So, today there is a surplus of homes available, but not all are very affordable.
There are of course several reasons for this, such as tightening of credit requirements from lenders requiring more money down and higher credit scores.
Obviously, something that they should have employed during the top of the market, as it is far less critical at the bottom.
But regardless of these issues, how can home builders stay in business? Can homebuilders rely on the Government to keep them in business building low-income and affordable housing? If the government starts assisting these companies, then should taxpayer's accept the affordable housing subsidies, as they will be the ones paying for it? Without affordable housing remember the potential for economic collapse is a consideration.
Many homeowners who have been foreclosed on cannot buy a home now due to their credit rating and with a lump of consumer debt, plus the lender's bill for after the foreclosure it might be forever and a day until they can buy a home now.
New homebuyers may not be able to get into a home.
But, if home builders can build low cost multi-family dwellings then that can solve the problems.
If the land is bought cheaply enough, regulations are streamlined and government works seamlessly with business - fat chance say some? Yet many cities are working hard to make this happen and governments have money and other financing options such as muni-bonds, even though right now that market is tanked and in deep trouble.
Governments can create tax strategies to lure businesses into building low-income or affordable housing through incentives.
Even re-zone land for such purposes, to help the builders.
Affordable housing is paramount - without stable housing the entire local economy will break down.
Residential Homebuilders must be creative to stay in business or move to other types of construction or they just will not survive.
So, this is a very serious issue, one that must be addressed.
Of course, in the United States there is a bit of unrest in the housing sector, as builders find no buyers for new homes, thus have stopped building them.
So, today there is a surplus of homes available, but not all are very affordable.
There are of course several reasons for this, such as tightening of credit requirements from lenders requiring more money down and higher credit scores.
Obviously, something that they should have employed during the top of the market, as it is far less critical at the bottom.
But regardless of these issues, how can home builders stay in business? Can homebuilders rely on the Government to keep them in business building low-income and affordable housing? If the government starts assisting these companies, then should taxpayer's accept the affordable housing subsidies, as they will be the ones paying for it? Without affordable housing remember the potential for economic collapse is a consideration.
Many homeowners who have been foreclosed on cannot buy a home now due to their credit rating and with a lump of consumer debt, plus the lender's bill for after the foreclosure it might be forever and a day until they can buy a home now.
New homebuyers may not be able to get into a home.
But, if home builders can build low cost multi-family dwellings then that can solve the problems.
If the land is bought cheaply enough, regulations are streamlined and government works seamlessly with business - fat chance say some? Yet many cities are working hard to make this happen and governments have money and other financing options such as muni-bonds, even though right now that market is tanked and in deep trouble.
Governments can create tax strategies to lure businesses into building low-income or affordable housing through incentives.
Even re-zone land for such purposes, to help the builders.
Affordable housing is paramount - without stable housing the entire local economy will break down.
Residential Homebuilders must be creative to stay in business or move to other types of construction or they just will not survive.
So, this is a very serious issue, one that must be addressed.
Source...