Inflation Reduction Act

[EvilMonkeyInTheCloset]

Our housing availability problems are brought to you by AirBnB, et al.

Far too many houses are being bought up by business ventures for rentals (short or long-term), cutting the available supply for people who simply want a home.

Simple solution here is to 2x or 3x the property tax rates on homes that are not your primary residence. You get 1 primary residence for 1x rate. Up those rates for "vacation" homes and rental homes. Eliminate tax breaks for rental properties that are not zoned as apartment dwellings. As costs for those go up, people will sell them back on to the regular housing market. Figure out ways to make that happen, to free up properties for sale as primary residences.

You can grandfather out seasonal vacation rentals/cabins, etc. Target the ones in regular, residential areas. That will generate more available new housing than building can or will.

And that will help people afford these newly available homes?...........

 

[jneffer]

And that will help people afford these newly available homes?...........

it would make it less profitable to sit on houses and use them for short term rentals

in theory, more existing homes would be available to meet our existing shortage

 

[Joes Place]

And that will help people afford these newly available homes?...........

That will free up home supply.
To meet demand.

Any idea how those economics work?

 

[RileyHawk]

It has everything to do with it.

The formula for US inflation is simple - deficit spending, expansion of the money supply far beyond the increase in GDP, and government policies that significantly alter supply of critical resources in the short term.

Where was the inflation after 2008?

GDP has been very good.

 

[RileyHawk]

it would make it less profitable to sit on houses and use them for short term rentals

in theory, more existing homes would be available to meet our existing shortage

Yes, but it would raise prices for long term rentals. For something like this to work you would have to weed out short term/long term rentals. Maybe anything 9 months or more is considered long term and gets the favorable taxation.

 

[EvilMonkeyInTheCloset]

That will free up home supply.
To meet demand.

Any idea how those economics work?

Any idea who is demanding?.................

 

[IIowaFarmBoy]

And that will help people afford these newly available homes?...........

Where was the inflation after 2008?

GDP has been very good.

You are making an argument where I"m not arguing. The reserve percentage is one of the many aspects of inflation whether trying to create or curtail.

 

[jneffer]

Yes, but it would raise prices for long term rentals. For something like this to work you would have to weed out short term/long term rentals. Maybe anything 9 months or more is considered long term and gets the favorable taxation.

communities already do that

zoning ordinances often make a distinction between short term and long term rentals (usually 30 days of continuous occupation)

enforcement would be an issue (it always is), but it wouldn't all that difficult...some municipalities near me are known to monitor websites for listings in their jurisdiction

 

[RileyHawk]

You are making an argument where I"m not arguing. The reserve percentage is one of the many aspects of inflation whether trying to create or curtail.

It's not. It's merely a lever that can provide some influence but it doesn't control inflation. That is very simplistic thinking.

 

[RileyHawk]

communities already do that

zoning ordinances often make a distinction between short term and long term rentals (usually 30 days of continuous occupation)

enforcement would be an issue (it always is), but it wouldn't all that difficult...some municipalities near me are known to monitor websites for listings in their jurisdiction

Some restrict renting from AirBnB and the like completely. Long term would have to be longer than 30 days. Many of these places are in locations where people are going for extended periods of 2,3,4 months or more. Making long term at least 6 months could impact residence status as well.

I don't think this is going to happen. Simply talking about what would need to occur for it to be effective.

 

[IIowaFarmBoy]

It's not. It's merely a lever that can provide some influence but it doesn't control inflation. That is very simplistic thinking.

No it's not. nuff said. It's part of the money supply situation. If you want to get technical, yes it influences interest rates. None of this matters without the power to lend and part of that is the amount of lending power there is (expanding velocity thru multiplication). Have a good day.

 

[RileyHawk]

No it's not. nuff said. It's part of the money supply situation. If you want to get technical, yes it influences interest rates. None of this matters without the power to lend and part of that is the amount of lending power there is (expanding velocity thru multiplication). Have a good day.

That's just a bunch of word salad garbage. Fact is, the reserve percentage has little, if anything, to do with the current inflation we are seeing.

 

[IIowaFarmBoy]

That's just a bunch of word salad garbage. Fact is, the reserve percentage has little, if anything, to do with the current inflation we are seeing.

On that we agree. Go back and read.

 

[RileyHawk]

On that we agree. Go back and read.

You've been all over the place. Glad to see you've come around on that part, anyway.

 

[IIowaFarmBoy]

You've been all over the place. Glad to see you've come around on that part, anyway.

I never was different buy you can't read for content anyway. Do you ever post about anything Hawkeye or just here to show your smarts... Btw, have taught college econ before. You should get out of your textbook.

You are good at one thing. Gaslighting anyone in discussion. Glad you expose yourself.

 

[fsu1jreed]

I see you're also an internet tough guy, Bless your heart.

Lol...I don't give a shit that you're a piece of shit MAGA