The right solution is so simple, yet so impossibly infeasible from a political perspective.https://twitter.com/DanielKayHertz/status/737724508711309314 …
Partner at @initialized. Previously @techcrunch. When life hands me lemons, I make tarte au citron.
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Kim-Mai Cutler Retweeted Daniel Kay Hertz
The right solution is so simple, yet so impossibly infeasible from a political perspective.https://twitter.com/DanielKayHertz/status/737724508711309314 …
Kim-Mai Cutler added,
you'd say the right solution to housing affordability is to cut/cap MID to pay for housing vouchers?
MID costs ~$70B/yr. Housing cost-burdened households in US - 25M renter + ? owner, say 10M. Switch MID = $2k/yr/hh = $165/mo.
probably only counting the 3 out of 4 families in poverty who qualify for vouchers but don't get it.
much more of population cost-burdened, 1/2 of all renters. + vouchers pay only up to FMR rent, many holders can't find housing
the effect of such policy needs to be modelled - vouchers/credits likely raise cost of low-end housing, perhaps offsetting..
tax deductions, subsidies just feed into higher land values, cost of high-end housing in supply-constrained markets.
and cost of lower-price housing also, Susin paper argues. If so, why would a lower-income voucher or credit solve problem?
I would ask @just_shelter for his argument on how low-income rental subsidies won't simply feed into higher costs.
I wld argue while cut in MID would possibly reduce 2nd home ownership it wld reduce house cost total
thus opening opportunity for more SFH shifting to rental market reducing rental housing costs.
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