Too Many Housing Vacancies in the Market

Too many empty units, not just single family homes, but rental apartments too. Calculated Risk did a good job of examining the numbers and showing charts, so I'm referring you to his commentary.

The outlook for housing depends on an important lesson: that we cannot look at the single-family home market in isolation. Every politician, journalist, and blogger who is trying to promote a clever solution misses the point: if you make the owner-occupied market better, you do so at the expense of the rental market. And then rental houses go up for sale, rental condos go up for sale, traditional apartment buildings get converted to condos, and the newly-finished condos do not get rented out but instead are offered for sale. The only solution is population growth, which will take some time.

Comments

[1,000,000 S...:]

If the issue is too many empty units (and I am in complete agreement that is a significant and critical factor) instead of having the Fed provide further liquidity & the Federal Goverment furhte indebt us, tap another source; Immigration.

Part of the problem is/are empty homes without enough "buyers" or people who are unfortunately unemployed. To get "more buyers" open up (not a flood but a flow) immigration, possibly through special path to Citizenship, to those who have US dollars overseas and can afford homes. Skip the tedious entry process to those who are willing to write a check for $1,000,000 and give them Citizenship (with vesting parameters, no felonies in 10 years, etc).

A million entrants into the US with a $1,000,000 would provide not just an immediate injection in liquidity to the Federal Government's deficit, it should also provide an opportunity for all those empty (to be) homes to be sold, occupied with the new citizens who pay property taxes and increase the liquidity in the US system.

Aren't there Chinese sitting on something like 2.3 Triliion US dollars due to the "Wal-mart" effect of our consumers. Money for Oil sitting on the sidelines?

The fact of the matter is America is the "ultimate gated community" in terms of people trying to get in. It is in fact American Dollars that are being sucked out of the country either through oil transfers to the middle east or through the "walmart effect" of industry offshoring and outsourcing. Trillions are sitting in the sidelines in Asia (China & India) or the Middle East (Dubai anyone?) and even in Russia (the recent oil boom and gas shipments to EU being examples). A way of bringing those dollars back is to bring them along with the people.

The problem is not "too much" immigration, its not enough of the right immigration. Fill the empty homes, refund the banks and financial institutions, and get the economy back on track through high income, high talented, risk taking, willing supporters of American values who will write over a check. Give the 1,000,000 Squared plan a chance to work.

Apr 30 12:05 PM

[Mr. Ed, Jr.:]

The government could just buy the houses and tear them down. Cheaper than spending trillions on bank bailouts and stimulus.

Yes, it sounds crazy, but it would solve the housing problem. And that would be a good start.

May 01 02:03 AM