Unfortunately a healthy housing market is surprisingly a good thing.
“Unfortunately” “a good thing”. These two things don’t seem to work together. Typo? ESL?
It’s like when house prices collapse it’s actually a bad thing because the reason that happened is worse than the result on the house prices (e.g. 2008).
If you’re speaking about the USA in 2008 that’s a bad example compared to Argentina here, yes? In the USA the collapse was lenders extending mortgages to buyers that had no chance of paying them back, yet selling those mortgages as though they were good investments.
Are you suggesting Argentina was experiencing a liquidity issue like the USA was, and if so, the imposition of price caps on just rentals, not ownership should have no effect on it unless you’re saying the price caps on rentals perfectly overlaps with a liquidity crisis.
People look at the system far to simply, do not understand it and make the wrong judgements. It’s the problem of a little bit of knowledge being a dangerous thing.
You can use that throwaway line, but if you are making an argument, you have to defend it.
“That which can be asserted without evidence can be dismissed without evidence.” (Christopher Hitchens).
Because there is not value it building a house because there is no value in buying one.
Again, we’re talking about just rental caps, not home ownership. And again, the reason that landlords were selling was because of price caps on rents. People wanting to buy homes for housing (and not rent) should be in a fantastic position to purchase.
Many many people have talked about the issues if price caps. It’s been done to death. Go look up a podcast, YouTube video, book, seminar, webpage of your choosing and find out why rent caps are bad. They will do a better job of explaining it than me and you can consume the information in the way you want.
Are you even reading my posts? I am not advocating for rental price caps, I’m asking why when the price caps were imposed that home ownership did not go up from the landlords putting more homes on the market.
Personally I would like some big changes to be made. Easiest of which would be a land value tax which would increase homes and decrease prices. Or much more radical things like destroying parts of cities. Unfortunately I don’t make those choices. So reading the information here is showing the opposite of what you think it does.
The following is true as reported in the article: Rental units are disappearing from the market (which is what happened here with the imposition of price caps on rentals and landlords sold).
Where did all the renters go that no longer could rent because the landlords removed so many units from rental markets? They have to live somewhere. Where?
Was the rental market over saturated and even with so many landlords removing rental units there was still enough rental supply for 100% of renters?