They keep raising prices, stating that it’s due to inflation, but then they keep having record profits.

Meanwhile, the average American can barely afford rent or food nowadays.

What are we to do? Vote? I have been but that doesn’t seem to do much since I’m just voting for a representative that makes the actual decisions.

  • chicken@lemmy.dbzer0.com
    1·
    1 year ago

    somewhere around 70% of homes purchased last year were by individuals

    What if you remove individuals who already have a home from that number?

    Home prices will rise as individuals can bid higher than before.

    Again, consider relative buying power. Even if you aren’t more wealthy relative to the average person and that stays the same, being more wealthy relative to the wealthiest still gives you greater ability to buy a home. This can be true even if demand and prices rise, and would be true even if it was only 30% of buyers that you’re becoming more competitive against.

    The only solution is to build more housing.

    That really should be part of it, but ultimately it is not enough. If wealth inequality gets high enough, if the market regards labor as worthless enough, it isn’t going to matter how much housing there is, it will get repurposed as golf courses or something.

    • phillaholic@lemm.ee
      1·
      1 year ago

      I believe it only goes down from 70 to 55. A better shot for sure, but you’d still be overpaying and having to buy without an inspection etc.

      I don’t see being more wealthy relative to the wealthiest as that beneficial in this scenario. They still have the ability to outbid if they want to.

      Building more housing, particularly apartment building or condos that people can own is the simplest solution to the problem. Solving income equality is a massive task with no perfect solutions. Building more houses is straight forward.

      • chicken@lemmy.dbzer0.com
        1·
        1 year ago

        They still have the ability to outbid if they want to.

        Are you familiar with price elasticity of demand? If they have to pay a larger share of their wealth, they will buy fewer. If houses cost $100, couldn’t you think of reasons to buy more than one, where you wouldn’t if houses were priced within what you could afford but much more expensive than that?

        income equality

        IMO the distinction between income and wealth inequality is very important here. Income inequality is about jobs, wealth is about accumulated capital.