Sunday, April 10, 2005

"We Can Work Here, We Just Can't Live Here"

Isn't it interesting that after years of runaway increases, and now that a crisis is upon the masses, the local governments are scrambling for solutions. Washington Post, "Researchers predict that within two years, the county's median annual household income, now $84,000, will not be enough to support the purchase of at least half the previously occupied townhouses on the market."

I guess it had to get silly before our "leaders" woke up. "Francisco Javier, a Montgomery firefighter said. 'It's kind of ridiculous, We can work here in the fire department. We just can't live here.'"

I doubt there is anything local or state governments can do. The bubble must be deflated, but the Federal government is not in the mood. In the meantime we will hear lots of schemes to "fix" the housing prices. "'This is why affordable housing has got to be on anyone's short list of major challenges to Montgomery County's future,' said Derick Berlage, chairman of the county's planning board."


At 2:03 PM, Anonymous Hee Hate Me said...

Local governments use 'affordable housing' as a fig leaf for prevent any new development from happening. Usually, they make up a set of rules for developers that are hard to follow, so developers build fewer or no houses.

After all, local govts are elected by people who already have houses for the most part, and those people don't want new housing to water down their property values.

At 4:46 PM, Blogger Mike Linksvayer said...

What He Hate Me said, more or less.

State & local governments can't do much to prick the credit bubble, but they could allow more and more dense residential development.

They could also kill state & local programs that aim to get more people renting from the bank (typically called "home ownership assistance" programs) which just encourage people who can't really afford it to go deep into debt.


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