Affordable Housing is a Myth

One word to start, Capitalism. Capitalism is the basis for our entire 50 state nation's economy. It is also why despite the government, charity, and righteous citizens best wishes, affordable housing is a losing cause.

Don't get me wrong, I do believe in select spots and locations where affordable housing can be helpful. For example, let's say an honest hardworking American has a major medical setback which bankrupts them? This unlucky human perhaps deserves affordable housing. Let's say unfortunately a person genetically predisposed to alcoholism and drug addiction needs to wean themselves back to sobriety and productivity? This person deserves a rehabilitating healthy environment and affordable housing too. Let's say, there is an earthly natural disaster which ruins neighborhoods and displaces human families. I personally think these families deserve temporary affordable housing. The above-aforementioned instances are 3 excellent real-life examples of why, Yes, we do need some affordable housing to be available. Keyword, some affordable housing.

Yet my main theme is to stress that on an EXPANSIVE and larger MACRO level, affordable housing implementation is a myth.

As an advocating capitalist and active, state licensed residential real estate salesperson, I am on the direct daily front lines of my city's real estate pricing battles. In a free-market, seller's tend to always yearn for the top or an above top dollar sales price. While buyers' are commonly shopping for a real estate property that can be acquired as a steal, major value or at minimum a "FAIR" value purchase.  As a real estate agent, one of my job's most difficult tasks is to locate a happy medium sales price and amenable negotiation between the 2 parties of buyer and seller or landlord and tenant. Sometimes this negotiation can be successfully navigated and others times it can not.

Real Estate tenants, sellers, buyers and all of the players are constantly testing and scouring the free capitalist market. Throughout the year, history and time, some residential neighborhoods rise in value, some stagnate, some fall. Intelligent buyer's with the buy low, sell high mindset, are often willing to purchase in what we call "Up and Coming" neighborhoods. "Up and Coming" neighborhoods are those city areas that are perhaps historically downtrodden, yet possess a silver lining. These areas are improving via new young buyer and youthful cool energy. Or perhaps these "up and coming" neighborhoods contain inexpensive cheaper lots and land, for new infill developers to demolish, build brand new, sell, and thus bring a higher level of wealthy residents to a neighborhood's community, stores, retail shopping centers, and streets in general. Maybe a brand new development in the works, will revive and lift up the spirits and value of a previously poorer neighborhood. An improving neighborhood's ambiance can truly enhance its residential real estate value.

The beauty of Real estate Capitalism is freedom! We as citizens have a right to simply MOVE. If you don't like where you live, Move. If your property taxes are burdensome, sell the property and buy or move somewhere cheaper. If your rent is going up, MOVE to a cheaper area. Is your city growing more than you'd care for? Move to another city. Newsflash, America's has tons of towns, land, and cities. Go! People, we can MOVE  anywhere we damn want! We can move to another city or state. We can move to the rural and peaceful countryside if we so desire. We can move and experience new geographical areas at any moment. In my opinion, it is society's reluctance to embrace inevitable change and physical movement that inhibits a person's life story and perhaps well-being. Life is about change, accept it and learn to use it to your advantage!

Real Estate is a supply and demand industry. If everyone loves your location and property, the consumer demand will be high and the price will go up. There will be multiple offers if you chose to sell, and you'll end up on the plus side at the closing table. If you decide to purchase in a neighborhood that is unpopular, undesirable, or perhaps prone to flooding or natural disasters, then demand for your property will be low. Your future sales prices will be lower and you should be aware of this before and after your purchase. Again real estate is a supply and demand marketplace that is constantly changing.

Where you and I can afford to live, does not always correlate with where we actually want to live. I'd love to have a beachside home in Pacific Beach California, or an Oceanfront Penthouse Condo in South Beach Miami, or perhaps a large modern Mansion in the middle of Central Austin. Yet my wallet currently can't support those place. Your dream property is no doubt different than mine. Here's an idea, maybe you could temporarily Airbnb or Vacation rent your dream property for the weekend or week? A min-taste of your residential living dream is cheaper than having to own it, maintain it, and pay property taxes on it. 

Remember Lewis and Clark and their Manifest Destiny? Lewis and Clark left the east coast and were in charge of exploring the untamed Western territory. All of us fellow Americans should cull the adventurous spirit, open-mindedness, and energy of our ancestral explorers, Lewis and Clark. Don't be afraid of Real Estate Adventures. Do some research, then venture onward. Our country was originally founded by citizens who wanted the innate right to become landowners. So my advice is to go and become a landowner yourself! Shop around, work with a licensed real estate agent and savvy adviser and go buy some real estate. Unlike automobiles, real estate is more likely to appreciate in value. Don't settle and sit on your keister hoping the government will solve your life with "affordable housing." Why? Because Affordable Housing is a Myth.