Real Estate and it's possible future

bridge's picture
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Perhaps you've noticed, but the real estate market right now really sucks. People are having trouble selling their homes, and they're also having trouble buying homes. The economy is in a depression because of several factors, including gas prices and the War in Iraq. The main issue is, how do we get out of this slump and what can we possibly do about it?

So for some reason this morning, I was speculating on how today's real estate is. I remember hearing a story of a couple who wanted to sell their house who did a shocking thing in order to sell it. Since the market is so bad, the couple bought a brand new car that goes with the house. That's right. A free car if you buy the house. The couple is actually losing money just to sell this house.

I began wondering: what if housing and land were free? Now, we wouldn't exactly be talking mansions or trailer homes, but maybe something more basic. Every family would be entitled to a free home and piece of land of their choice and wouldn't have to worry about mortgage or rent payments. Seems like a simple solution, but as with everything else I blog about, there are several factors to consider.

1. House size and style. If it became mandory to build houses for people for free, the houses may begin to take on a template look. In other words, they'd all be the same. Ever see one of those neighborhoods where all the houses are the same, except they're different colors? That doesn't sound very good to me.

2. The builders. How do the builders get paid? Only organizations with part-time workers will build for free, so where are professional house builders/wirers/and others going to get their income? If the government paid them, wouldn't this just put our country more in debt? (of course, there's the fact that the money stays in-country, so it continues circulating among Americans--that might not be so bad.)

3. Family size/preferences. If we're talking about average homes, what about families that are bigger? 13 child families would need more space, therefore the house would need more materials and would cost the builders more money and time. Also, what if it's a farm family? They'd need more land space and farmland, along with a barn/silo and other necessary structures. The complications add up.

At first, the idea of free housing seemed like a good idea, but then the impracticality of it all added up on me. What if this free housing ended up being little more than a cubicle per person in some super-apartment building? That's not a very good living arrangement in my opinion.

Maybe housing can't be free, but can't anything be done to lessen the prices of homes so they are more affordable for middle-and-lower-class people? House values can't keep going up. Houses just a few miles from my own are being sold for millions to rich New Yorkers while the people who originally lived in the area will be pushed out due to the crazy prices of gas and other necessities for living. Something must be done, and fast, or else half of America will be homeless while the rest are millionaires.

Suddenly, living in a capitalistic society really sucks.

drifterdani6886's picture
Member of the Progressive U Alumni Association

Might I just correct you nicely. I may be the wrong one but I believe that it is a recession we are experiencing. No one believes me and I am glad that you brought up housing to further prove my point. Hell we may be in a depression, but sad to say I believe a depression will be much much worse than what is going on now.

Free housing would be nice and the points you listed were great points. Free housing would stimulate the economy. The reason is they could make it where they would hire and train unemployed people therefore giving them jobs.

I am in a state of panic because this article I read. I wish I could find it. An economist stated that it would be a great idea to stock up on rice and gallons of water. I am not trying to scare you or anyone that was just what he stated. This bothered me because he said rice can feed many people for long periods of time.

This blog was very good. Houses aren't selling. This couple on cnn had to sell their house and they now are living in their camper. A very tiny camper. Banks are taking this as an advantage right now and screwing people out of money.

http://www.progressiveu.org/032913-lupus-uncureable-wait-what
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bridge's picture
Volunteer for the Progressive U Alumni Association

A recession, huh? I suppose that could be a more accurate word to use. A depression would be worse, yes, but isn't this the beginning of a potential depression? Perhaps I should word that sentence in the blog a little better so there isn't confusion...

I heard about the possibility of rice becoming scarce, but it's almost hard to believe at this point. I mean, look at Chinesse takeout! We get boxes of rice we don't even want! That said, if there will be a shortage, we should consider growing more. I know the US doesn't have the best climate for rice growing, but certainly down South we could do something...maybe even grow indoors.

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drifterdani6886's picture
Member of the Progressive U Alumni Association

Although I have heard of the rice issue I don't think it is that big of an issue quite yet. What I was saying was the economist was pretty much saying prepare to stock up on food that you can keep for a long time because rice might be the only thing anyone can afford because it is cheap and lasts a long time and feeds alot of people.( pretty much prepare for the worst)

We are heading towards a depression I agree on that but we are in a recession. There are still wealthy people out there. When wealthy people start getting to the point where they can't afford anything then we will be in a depression. Economically it is really bad, but when we have a depression the rich more than likely will drop to middle class and the middle class will drop to poor. I am not totally for sure but this was what happened during the great depression in the 1930's.

I think I will write a blog on this actually because I have been researching it alot and have found alot of things that are comparable to the great depression that we are heading there but not quite. I understand where you are coming from though.

http://www.progressiveu.org/032913-lupus-uncureable-wait-what
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bridge's picture
Volunteer for the Progressive U Alumni Association

If you haven't by this point, you should write a blog on the topic. You're more knowledgeable than I am in this area.

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Member of the Progressive U Alumni Association

I live near the Crow and the Northern Cheyenne Indian reservations. The Bureau of Indian Affairs provides them with free housing.

It is pretty grim stuff. The houses are junk even when brand new.

bridge's picture
Volunteer for the Progressive U Alumni Association

Well that's sad to hear. I guess even today the Native Americans are dealing with hardships because of us. The only alternative seems to be to get a "real" job and start earning money rather than living off the land.

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Magnificentme's picture
Quote:

can't anything be done to lessen the prices of homes so they are more affordable for middle-and-lower-class people? House values can't keep going up

You are right, housing prices can't keep going up... And they aren't. One of the major issues with the economy at the moment is the Sub-prime mortgage mess. Until very recently housing prices across the country were incredibly inflated, and they kept rising so people bought houses that they couldn't afford with the thought that when they sold their houses they would be worth more than they are now. Banks gave loans to people who shouldn't have gotten them, because they expected to be able to foreclose on houses and get a greater return. The problem is that the housing bubble has finally popped, so housing prices have stopped rising and in some areas houses are declining in value. The economy is fixing it's self.

Incidentally, many people blame Greenspan's rate cuts 4 years ago (remember the dot-com bust?) for the housing bubble and today's issues.

-m-

bridge's picture
Volunteer for the Progressive U Alumni Association

But I think it's a good thing if the house price incline has reached it's peak and will level out. Like I said before, these prices can't just keep going up. People need to wise up and realize that they need to make their money through a job, not by selling their home. Maybe that's naivette talking, but that's how I feel.

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