But I was talking about, and responding to, the points about the individual compensation for real estate professionals. There’s a difference.
Government activity has almost no influence on agent commission rates. The rate is always an individual agreement between clients and the agents.
Of course the two markets are related, and one could argue that government activity increases the volume of transactions, and thus provides more need/demand for real estate services. But that is only a tangential effect of government policy, at best. And there is no government policy that inhibits people from becoming agents, entering the (labor) market, and competing for the same pool of compensation.
We have 9% unemployment, and agents are making an “easy” 100K. All you have to do is take a few classes and pass a test to become an agent. So why aren’t more people doing it? If the government were handing out money, why wouldn’t more people be in line to take it? (thus driving down commissions as more agents compete…)
Give yourself some credit. Your job is harder and/or takes more qualifications than you describe. At least to make a living at it.
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I think we are talking past each other here.
I don’t mean that the government is just throwing cash at agents.
I do mean that the whole post WWII megatrend of creeping (or galloping) RE price increases is heavily influenced by government sponsorship.
There’s is a lot of evidence for that.
Prior to the 40’s (or late 30’s) the govt was largely out of the real estate game.
Prior to that time down payments were generally about 50%.
Here is a good explainer: http://www.stlouisfed.org/publications/cb/articles/?id=797
The government is creating the market through preponderant ownership of the means of production.
That largely government-controlled market is what makes the worked performed more appealing as an income.
So its not a direct subsidy.
We are ancillary service-vendors to a market that is heavily manipulated.
And no, I don’t think its easy.
Anyway direct subsidy does not mean jobs are plentiful, desirable or easy.
I am married to a teacher and I would never use any of those words.
