65% of the population owns its own home, but 1/3 or so dont carry morgages. I wouldnt be suprised to find the vast majority of these people bought their houses decades ago, paid them off, and have no intention on moving.
Classic example, my grandparents. They have lived in the same house for nearly 30 years, dont have a morgage, and are not going anywhere. They couldnt give a rats ass what the house is valued at. Hell, they prob wouldnt mind it falling, cause then their property taxes would be lower (no they dont live in CA). I include some people who carry stupidly low morgaes with this group. When you owe 15k on a 250k house, you are in the ‘no morgage group’ when it comes to this.
-I would say, excuding bubble state mentalities who are constant permabulls, no more than 40% of the population REALLY care what their house is worth. Most of them are people who have purchased in the last 10 years or so.
The Bottom 25% totally do care what prices are. These are the subprime folks, the ones who took the worst loans and dumbest risks. They want lower prices so they can afford to buy something.
-I would exclude perhaps the bottom 15%, but that other 10% has dreams.
I wont fight you on the ‘never want to buy crowd’, some people really dont care. (live in a VAN down by the RIVER…) Actually a buddy of mine fits this grouup. He was gifted the house by his adopted father at 24 when he re-married. As long as he can come up with the property taxes and utilitiy bills, the rest is gravy.
So population wise, i’d guess:
45% want it higher,
30% want it lower,
25% dont give a flying rats ass.
Thing is, BUISNESS’s are almost all based on higher housing prices. Home builders and their countless subcontracters, REagents, Brokers and banks, Home repair/updaters, Home depots/lowes, trades workers (carpenters, plumbers etc) all do better with rising house prices. Add in the school districts and government programs dependent upon increasing property tax revienue, and it is by far and away a BUISNESS preference for increasing house prices.
As ususal, follow the money and you will find why our policy is as it is.
