We’re not sure why they’re not just proposing giving away houses, but the California Assembly and Senate are willing to go almost halfway, having the state pay for up to 45 percent of a home, cutting the purchase price nearly in half. Oh, and the state owns that 45 percent of your house.
The California Assembly & Senate unveiled a joint spending plan that proposes a program in which the state would pay for, and own, up to 45% of a home.
That would cut the purchase price nearly in half, allowing more families to buy homes & build wealth https://t.co/m4W2z1HNOV pic.twitter.com/KKetnkIV1o
— CalMatters (@CalMatters) June 2, 2021
It would cut the purchase price nearly in half because you’re only getting half a house. And there’s no chance that housing prices would rise even higher with the state subsidizing the purchase price.
The end result of this over a decade or two? A massive increase in the cost of homes, an enormous tax increase, and eventually all sorts of intrusive government demands for builders and owners of government-funded homes.
— John Hawkins (@johnhawkinsrwn) June 3, 2021
What a giant bucket of graft and fraud from which to rake off kickbacks and reward left-wing cronies.
— BattleSwarm (@BattleSwarmBlog) June 3, 2021
Cost of homes doubles overnight
— Andre (@Dre_LilMountain) June 3, 2021
This worked so well with college funding.
— Christine Price (@PstafarianPrice) June 2, 2021
Hello @BadEconTakes – I believe this qualifies.
— Apoorv (@apoorv3E) June 3, 2021
People in the comments are missing the point. Partially owned government housing is a step towards Cuba style housing. It’s not meant to decrease housing prices. It’ll raise them, requiring the gov to pay for them further until it fully owns them.
— Christian Varela (@vgman94) June 3, 2021
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This is terrible Econ. Demand will double, supply is the same; meaning home prices will skyrocket, and you won’t even fully own it. Early entrants & current home owners will benefit and late entrants will get robbed.
— Wolfgang (@WolfgangDood) June 3, 2021
Someone missed Econ 101. This does not cut the purchase price in half. This causes housing prices to increase. The solution is simply to allow housing construction.
— Austin Nissly (@atnissly) June 3, 2021
This is idiotic.
Do these people not understand basic economics?
Have they not seen what has happened with college tuition?
This will make the problem worse.
— Jeff @ 🏡 (@Darchmare) June 3, 2021
Taxes would pay 45% of the home, unless there is some magical pot of gold somewhere.
Home prices would increase by 45%, at least.
— Thomas Morris Jr. (@ThomasWNY) June 3, 2021
"It's the year 2030 and you own nothing, and you will be happy" – World Economic Forum 2020. The method reveals itself. It will raise prices while constraining supply and put late comers deeper into debt. Devilish. They will own it all – and they will own you.
— Red Sky 🟢 (@Alp_Trader) June 3, 2021
Just the start of the world economic forum plan of "you will own nothing and be happy"
Happening in plain sight, but most people don't even know it's coming
— xGringo (@xGringo_) June 2, 2021
Since this doesn't actually change the number of homes, this cannot "allow more families to buy homes". With such a restricted supply, there are only so many homes to go around.
All it will do is raise the price of homes. This is great for existing homeowners, of course!
— Ashley (@polyaletheia) June 3, 2021
And thus the prices double
— Dr. Anthony Burnetti (@TonyBurnetti) June 3, 2021
Who tells these people that this is a good idea. Seriously, I’m really curious
— Pache (@pcal051) June 3, 2021
This is dumb, even for California legislators.
— InnocenceCapital (@InnocenceCapit1) June 3, 2021
Stunning. Another policy to “help” Americans. Housing prices will just double from here and normalize to where families are spending > 30% of income on housing. An innovative new way of can kicking.
— Matthew Lanning (@LanningATX) June 3, 2021
JUST. BUILD. MORE. HOUSING.
That's it, that's the solution.
— Ramjomi66 (@ramjomi66) June 3, 2021
Imagine thinking this could work.
— Oliver D Chadsworth (@OliDMgillicutty) June 3, 2021
That must be the most idiotic idea I have ever heard. Please do Econ 101 first.
— Kolja (@Kolja__) June 3, 2021
Was there even a single economist that was consulted? Throwing money at something *increases* its price, always.
— Chuck Beretz (@ChuckBeretz) June 3, 2021
So you will use my money (taxpayer dollars) to “help me” buy something that I won’t even really own? Instead of just letting me keep my money (taxpayer dollars) to buy it myself?
— Michael White (@faith8fear) June 3, 2021
This is a horrendous idea
— Daniel Tubb (@jdtubb) June 3, 2021
This is a terrible idea. Massive price inflation. The death of the American dream. The government snatching up real estate with TAXPAYER DOLLARS at the expense of the average family trying to buy a home. All while you are pretending to “help.”
— Michael White (@faith8fear) June 3, 2021
— Dan O'Donnell (@DanODonne11) June 3, 2021
The sheer amount of stupidity on display here should be criminal..
— DUTCH.HODL (@SStacksats) June 3, 2021
What happened to Slate’s suggestion that, in San Francisco at least, it was time to bring back dormitories for adults? Or L.A.’s idea of living in “pods” that you share with other people?
Related:
Move over, shipping container apartments, and make room for PodShare https://t.co/MGHgdNG4VH
— Twitchy Team (@TwitchyTeam) September 11, 2019
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