I've thought this for a while: NIMBYism and other anti-development policies is how liberals implement "red lining" with plausible deniability... even to themselves. They're not trying to exclude the poor and minorities. They're trying to protect the environment! Never mind that these policies encourage sprawl and waste.
It's more than that- dodd frank made financing for building spec houses/housing next to impossible unless participating in a hud or similar program. These policies result in the exact opposite of what you would want to build class mobility/ American Dream/ generational wealth: more rentals (without lowering rental costs, since govt guarantees a min return), less home ownership, and a higher barrier to invest in the housing market.
What?! Dodd-Frank had nothing to do with it. The housing price crash allowed institutional buyers to make a new asset class out of SFR. They bought hundreds of thousands of houses. They aggressively increase rents because they’re levered and their returns come from rent increases. This has caused rents in the rest of America to sky rocket. Not only do they vacuum up inventory, they never sell it. This hurts would be homeowners two ways.
It used to be that SFR was all small funds or investors. These investors hold fixed 30 year notes and don’t have to be aggressive with rent increases. A turn is more of a concern than a rent increase.
Dodd- Frank had nothing to do with that. The fix is to require these institutional funds to liquidate to owner-occupants after a decade. Let them cash out the appreciation and wind up the fund.
