Real USA Home Prices Flat for 1 Year & 19% Above 2006 Peak
Home Prices and Incomes
Changes in per capita income is probably the second most important determinant of changes in home prices.
But where mortgage rates are uniform nationally, changes in per capita income can vary a lot from metro to metro.
From 1990, nominal per capita income was up nearly 5x in San Francisco but up only 3x in Cleveland.
The New Subprime = High Debt-to-Income
One Zoning Change that WILL Make Housing More Affordable
Here’s a zoning change that would make homes more affordable, permanently, for free.
Zone areas of single-family homes for owner-occupants only. No rentals allowed.
Many years ago, I couldn’t figure out why homes in a few communities were cheaper than in the rest of Sun City. Then I found out the deeds in those communities prohibited owners from renting out those homes.
Instead of getting rid of zoning – which studies show doesn't make homes more affordable – how about limiting zoning to primary residences in most residential areas?
Zoning and Building Permits are NOT the Problem
- Builders have Plenty of Building Permits
They can build more… if they want to.
But builders don’t want to build so fast that it drives down their home prices, profits, and executive bonuses. That would be irrational.
Everyone is debating supply and demand. But buyers often overlook great properties simply because they can't visualize the potential.