As we all know, the younger generations have lost all hope in home ownership. As the boomer generation and hedge funds continue to buy up all of the single family homes, continue to jack the prices up and use the millennial and Gen Z generation as work horses to fund their retirement, we have reached the point that this fake economy balloon can no longer sustain life.
It’s no secret that the reason for this massive inflation has multiple causes, however within the single family home prices there is a simple fix that would bring prices down to the true supply and demand.
I am proposing strict regulation on single family homes being owned as long term rentals.
This regulation would prevent the speed at which the rich get richer and vise versa. It would unlock the ability for the younger generation to actually be able to afford to own their home or at least qualify for a loan. It would prevent the boomer generation to fund their retirement on the backs of multiple generations for the sole reason that they were born at the right time.
Capitalism should be about how much value you bring to the market which is correlated with the income your produce. Where as in this fake sham of an economy, one can just buy debt and offer nothing else but stack house after house after house to accumulate wealth without offering anything of value.
This regulation does not restrict real estate investing, it innovates it. It creates a capitalist structure within real estate because now the competition is within all of the other facets of real estate. Mobile home parks, apartment complexes, Airbnb, campgrounds, condos, duplex, triplex, multifamily etc. These all take creativity and value creation to make people choose the better complex than just a class war of owner and renter.
Real estate flippers can operate as they always have, they can just forget about the BRRR strategy of renting it out afterward. Just flip it for profit or build an Airbnb experience with your profits to create a passive income but one that provides value and service.
Yes this regulation would drastically lower the prices of real estate, specifically single family homes. However, this may hurt those who have bought in the peak of the market and those who refinanced their homes at the peak of the market but we need to be thinking about long terms solutions.
Long term solutions may cause short term pain, but this is one that will benefit our society, country and younger generation greatly. This proposal will give our younger generations the ability to have a shot at the American dream and help us to create a better system than the one we are slave to now.