In case of the US I’d say something must be done, either build more, or adjust economy in order to the middle class to be able to purchase in cities again.
Building more doesn’t solve the problem. There is vacant real estate already. If you don’t have a tenant for a property, you’re operating at a loss. A loss is a tax write off. With some creative accounting, it might be better to keep a place empty and increase the rate no one will pay you.
My solution is to devalue money.
A network of businesses and merchants that based on income, estate assets, and their contribution to the wield as recognized by the network, add a fee or a discount.
If you are living up to your potential doing good things, you can afford to spend less. If you have no income, but you are doing good to your abilities, potentially all basic needs are covered.
If you are hording value and causing harm, then you pay additional fees.
Combined, the fees cover the discounts. The economic gap grows smaller.
It would be massively more simple, and more profitable to government, to simply levy a colossal tax on property owners who leave their rental properties empty for more than six months or so.
Ah, they’re trying that in Portugal. It doesn’t work. They’re going even as far as expropriation the houses from the owner, forcing them to rent at state agreed rates.
My wild guess? The only solution is reducing inflation to the negative to make money more valuable.
Deflation can be even more destructive than inflation. It would basically make all kinds of debt more expensive, to which real estate is particularly sensitive. There’s a chance that could force over leveraged property owners to sell, but with more expensove debt, there will be fewer buyers and it would tend to be those who can take on the higher risk (aka the already wealthy).
All that is to say, I don’t have a solution either (especiallly if high taxes on non-dwelling properties doesn’t seem to be making an impact), but deflation is almost never good…
Building more doesn’t solve the problem. There is vacant real estate already. If you don’t have a tenant for a property, you’re operating at a loss. A loss is a tax write off. With some creative accounting, it might be better to keep a place empty and increase the rate no one will pay you.
My solution is to devalue money.
A network of businesses and merchants that based on income, estate assets, and their contribution to the wield as recognized by the network, add a fee or a discount.
If you are living up to your potential doing good things, you can afford to spend less. If you have no income, but you are doing good to your abilities, potentially all basic needs are covered.
If you are hording value and causing harm, then you pay additional fees.
Combined, the fees cover the discounts. The economic gap grows smaller.
It would be massively more simple, and more profitable to government, to simply levy a colossal tax on property owners who leave their rental properties empty for more than six months or so.
Ah, they’re trying that in Portugal. It doesn’t work. They’re going even as far as expropriation the houses from the owner, forcing them to rent at state agreed rates.
My wild guess? The only solution is reducing inflation to the negative to make money more valuable.
Deflation can be even more destructive than inflation. It would basically make all kinds of debt more expensive, to which real estate is particularly sensitive. There’s a chance that could force over leveraged property owners to sell, but with more expensove debt, there will be fewer buyers and it would tend to be those who can take on the higher risk (aka the already wealthy).
All that is to say, I don’t have a solution either (especiallly if high taxes on non-dwelling properties doesn’t seem to be making an impact), but deflation is almost never good…