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(lemmy.blahaj.zone)
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this post was submitted on 21 Mar 2025
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Microblog Memes
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Unfortunately this won't solve the housing problem. It'll just cause the demolition of perfectly fine houses to avoid increasing costs and new homes would only be built if there are people that signed a tenancy agreement beforehand.
The market would shift from readily available but empty homes to yet to build homes.
Why would they demolish houses rather than selling them? Makes no economic sense.
Who would buy a house that would only cost you?
The homeless wouldn't magically have money for rent. So the homes stay empty. Nobody would buy them either because then they'll have to burden the ever increasing costs.
A nominal fee from a heavily discounted sale is still more than spending money on a demolition.
Not to mention demolition requires permitting. Municipalities don't just hand you a permit just because you asked. If you wanted to demolish a perfectly good house, they'd be asking questions.
Why would they demolish homes? They'd have ways to make some money off them vs none - either they sell at a loss, take a tax write-off to surrender it, or they spend a significant fraction of the construction cost to tear it down to resell the land
It would definitely flip the current real estate development industry upside down, but I don't see that as a big negative - being a landlord is still very profitable, so investors will still want to do it. But you can't let units go empty, so they'll be going for affordable or in demand housing rather than highest profit margin (aka McMansions)
Plus, it's estimated that up to 1/3 of housing in the US is empty - the homes exist, they're just sitting empty. I'm not sure if that counts stuff like air BNB or not either.
Eventually, these buildings are going to age out and need to be replaced, which my plan would throw some hiccups into - but that gives us time to fix things without forcing people to die on the streets