I don’t understand how affordable housing isn’t a huge political issue. It’s missing on the left and the right. Housing is way more important, most people would think, than say, free college tuition (left) or reducing immigration (right) — two issues that get tons of coverage by politicians.<p>Where is the outrage? Where are the action plans and policy proposals? It bothers me.
I'd bet the typical mortgage interest is also above minimum wage. Google says San Francisco's median house price is 1.61M. If 80% of that is a mortgage and it's at 4.25%, that comes out to about $55k in interest alone during year 1.<p>Zillow wants you to buy houses, so it'll make it look like you make money out of nothing. I
In other news, most workers can't afford the median-priced home:<p><a href="https://www.attomdata.com/news/market-trends/home-sales-prices/home-affordability-report-q1-2018/" rel="nofollow">https://www.attomdata.com/news/market-trends/home-sales-pric...</a>
Is this really surprising? Large amounts of capital give sizable returns. Even with a 2.5% return (inflation) on $1M, you'll earn $12/hr at a 40 hour workweek.<p>Next up in not surprising news, people with $500k stock portfolios likely earn more in appreciation & dividends than the median US worker.
When you artificially limit the amount of housing via the government (zoning, height maximums, lot size requirements, etc.) you make housing worth more than it would in a free market. This is not surprising and is exactly the outcome desired by home owners in elite cities.
the rate of capital growth is intended to outpace the rate of labor<p>this isn't news, this is the design: make enough money fast enough that you can live off it forever. if you do it too slow, you have to live off the principle and it is more likely that a large cost destroys your principle.