Submitted by mad_dog_94 t3_124pbvf in jerseycity
Byzantium-1204 t1_je0pkdg wrote
Reply to comment by Ilanaspax in Tenants Fight Back As Rents Soar In Jersey City And Hoboken by mad_dog_94
They need to enact laws where investment firms or other entities like Zillow are only allowed to own a small %. This is screwing over future home buyers. It’s ridiculous
JeromePowellAdmirer t1_je1ad7q wrote
You realize the share of investors in housing peaked in 2012-13?
And that Zillow famously wound down its home buying after taking significant losses on it, something big enough to make national news last summer?
And that small to midsized landlords make just as much profit per unit as large landlords?
There is only one solution and it's getting New York City to build enough housing so their residents stop moving here. If that happened, Jersey City's high building rate would lead to stable prices just as it did in Minneapolis. Problem is Minneapolis is the largest city in their region and Jersey City is not even close. As for Hoboken they don't build enough either and it's no surprise there are no neighborhoods like Greenville or Bergen Lafayette or McGinley Square still standing there.
Blecher_onthe_Hudson t1_je1fy9q wrote
>There is only one solution and it's getting New York City to build enough housing so their residents stop moving here.
100%, only it needs to be the suburbs as well as the city. The town I grew up in on Long Island is 35 minutes from Penn station, has two rail stops, and zero multifamily development.
smrb t1_jegsz81 wrote
or perhaps new york should adjust/waive the city tax rates so people making over 400k don't flee to JC
JeromePowellAdmirer t1_jegxbih wrote
If that were the issue rents in NYC would be cratering as all the rich people moved out. Yet NYC rents are much higher than here.
Ilanaspax t1_je0rbef wrote
But then how is Fulop going to get all his free home renovations if he’s not bending over backwards for developers?
AccountantOfFraud t1_je16e76 wrote
Why stop at investment firms and not landlords who own multiple properties?
objectimpermanence t1_je1qqdc wrote
That would be pointless. The vast majority of housing is owned by individuals. And 70% of rental properties are owned by people who own just one or two properties. Source.
The underlying problem is that there is simply not enough housing in the places where people want to live. When demand outpaces supply, prices go up. It’s really simple stuff.
AccountantOfFraud t1_je1u64b wrote
How is it pointless?
> Most rental properties – about seven-in-ten – are owned by individuals, who typically own just one or two properties, according to 2018 census data.
Seems like you can get more properties on the market by going after those who own more than one.
JeromePowellAdmirer t1_je1xo8z wrote
Rentals are still needed, people who just moved and young students need a place to stay, people getting out of domestic abuse and such need a place to stay, also there should still be an option available for those who don't want to deal with maintenance if we're talking about an ideal society. The real problem is rent growth. If there was enough supply to stop rent growth then not only does renting becomes more appealing, there is also no reason to "invest in housing" at that point driving the investors out naturally.
AccountantOfFraud t1_je1ya2o wrote
Go ahead and tell me the group of people who lobby against increasing housing supply
JeromePowellAdmirer t1_je1zhik wrote
No clue what you're getting at. Housing supply should be increased regardless of who lobbies against it
AccountantOfFraud t1_je1zta9 wrote
Sure, and at the same time we can tax people who own more than one property to encourage them to sell and add to the supply.
JeromePowellAdmirer t1_je25hfe wrote
I'd agree, though I'd rather rich homeowners downtown don't get to escape. I would make the tax on "everyone" but add a 500k deduction for primary residence
rubensinclair t1_je1z6i5 wrote
If we had a government that worked, we could make it illegal for corporations and foreign investment firms to buy up single-family homes.
djn24 t1_je1z4ic wrote
We also need incentives/funding out there to just start mass developing single family homes in less urban areas. New York is pushing through orders that will force communities on the outskirts of urban sprawl to start developing more housing, which should hopefully help to offset this crunch in a few years.
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