this post was submitted on 29 Aug 2023
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IDK, the student loans program in the US didn't work out very well, and a lot of people just ended up with a ton of debt they couldn't handle. I'm worried the same would happen with a federal housing loan.
What we need instead is better housing density. Right now, if you want to buy a property (at least in the US), you need to also buy a car and commute long distances because that's the only way you're going to be able to afford a place at all. If we instead built more mixed housing near transit lines (e.g. business at ground level and a purchasable apartment above it), you could own something and not need a car to get around. That would work for the first few years, and if you decide to grow your family, you could use your equity as a down payment on a larger place.
But we really don't have much in the way of a starter home. In my area, $300k is "cheap," and with loans now around 7%, you're going to need a larger down payment to keep mortgage payments reasonable. Most new construction around here is either luxury apartments or high end housing.
Unfortunately, zoning laws don't allow this in most US cities
Right, so the focus should be on fixing zoning laws, not on trying to get people into needlessly expensive homes.
Not a loan. A cash grant for a down payment. Government money if you don't have wealthy parents like mine.
But also mixed use housing.