Five Myths About Affordable Housing

The downturn in the housing market has led to a lot of misconceptions about housing. This piece from The Tyee identifies five myths about affordable housing.

"Think the falling real estate market is going to solve B.C.'s housing affordability problems? Think again: Home prices would have to plunge 55 per cent before ordinary families will be able to buy homes in this market. And if real estate sinks that low, so will family incomes."

Myth #1: The market correction will restore affordability

Myth #2: As home prices fall, so will rents

Myth #3: Empty condos will loosen up the rental market

Myth #4: Build more homes and prices will drop

Myth #5: The government needs to subsidize more housing

Full Story: Affordable Housing: Five Myths

Comments

Comments

"Home prices would have to

"Home prices would have to plunge 55 per cent before ordinary families will be able to buy homes in this market. And if real estate sinks that low, so will family incomes."

Not so of families who have been saving rather than relying on debt to purchase a home.

Not true of families who are pooling their money from within their own family group (or other affinity group) waiting for the optimum time to buy.

Not true for small time investors who have equity in other property that can be used to buy homes at a reduced rate (and offer market rate rents, even at surpressed incomes, until the economy improves).

In short, the people who DO NOT want prices to fall are those who want to maintain their status quo grip on the old way of doing things ... banks, realtors, big time homebuilders.

Artificially keeping prices high is NIMBYISM at its most egregious.

Affinity Group Funding

If affinity groups are the only or primary way the average person can afford the stability of homeownership then perhaps it is time to look at our communities, our country as an affinity group that should assist in,take share responsibility for assisting in stability for its affinity group, ordinary folks.

Many savers and investors have had help from family or other affinity groups.

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