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Do you think we will ever have affordable housing again in our lifetime? (discuss.tchncs.de)

submitted 1 year ago by [email protected] to c/[email protected]

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cross-posted from: https://lemmy.world/post/3560407

Considering how crazy expensive accommodations have become the last couple of years, concentrated in the hands of greedy corporations, landlords and how little politicians seem to care about this problem, do you think we will ever experience a real estate market crash that would bring those exorbitant prices back to Earth?

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[–] tburkhol 0 points 1 year ago

If you want to disincentivize landlords through tax, it'll be through income tax to directly reduce their profit. Take away the tax deduction for mortgage interest. Take away depreciation. It's easy for most landlords to book taxable losses every year while generating positive cash flow.

Rent is always more than mortgage+insurance+taxes on equivalent property. The landlord has all the same expenses (and more) as a homeowner, passes them on to tenants, then adds expected vacancy and his profit on top.