News @lemmy.world GiddyGap @lemm.ee 8 mo. ago

Colorado Homeowners' Mass Exodus Sparks Fears of Housing Market Collapse

www.newsweek.com Colorado homeowners' mass exodus sparks fears of housing market collapse

Colorado rental home owners may be getting hit with heavier taxes if a state bill passes in the next few months.

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"We cannot live with all these types of restrictions ... this will, in my humble opinion, kill the short-term rental economy in Colorado," said property management company owner Hillary Skye at this week's hearing.

She says that like it's a bad thing.
- Honestly, fuck people like her.
  
  Colorado house prices and rental costs are crazy expensive and have been for years. We need a crash in rental and property prices -- enough to get affordable for normal people again.
- It is to landleeches. To the common person it's a great thing.
- Importantly, the original intent* of AirBnB (renting your place while you're away or on vacation) won't be impacted unless you take more than 90 days of vacations in a year.
  
  rented for more than 90 days a year on a short-term basis
  
  Seems reasonable to me. Colorado defines a "short term basis rental" as 1 to 29 days.
  
  So people renting extra rooms on a month to month (or longer) basis to help make ends meet won't be affected either.
  
  * The original advertised intent before large corpos started buying up properties to list them on AirBnB
- "I might be forced to sell off the 30,000 properties we own, at an affordable price, so families could live in them without financial struggle!
  
  DO YOU REALIZE HOW MUCH THIS COULD HURT OUR BOTTOM LINE!?"
Who is afraid of the housing market collapsing? Rich people? Fuck you, get eaten. Please for the love of God let houses become affordable again.
- Yeah for real I’m so fucking excited.
- Speaking about the broader point about housing collapse hurting homeowners of a single home, I wouldn't call people who had 50K-100K saved that went towards downpayment rich. There certainly are many poorer people but saving this much requires earning just $1000 extra per month for 5-10 years. That's $10/hr more. These aren't the rich people that should be eaten.
  
  I'm just addressing the general point of who gets hurt during a real estate market collapse. I know the article is talking about landlord taxes. Those are going to hurt the right people. In fact I was going to suggest that if you want to hurt rich people more than the working class, you want to tax them and/or pay the working class more, not tank the markets that render vast quantities of working class homeless.
  
  But they have a house. 50-100k or not. They got in. Some of us have that now, barely, and still can't get in.
  
  The only way the housing crash would affect them is if they sold. But for the vast majority of homeowners, it would not matter.
  
  Crash. I want a house.
  
  Lol just $1000 extra a month. I agree that no, those people aren't ultra wealthy, but let's not act like that much a month isn't a completely unobtainable amount for many, many people, especially when rent is eating up 50% of people's paychecks to start with.
  
  Oh just an extra $1000 a month, is that all?
  
  If you wouldn’t call someone with a disposable $50-100k in the US “rich,” you have no understanding of how bad it is out there.
  
  I’m gonna need you to sit down with your house cleaner and ask them what life is really like for a lot of americans.
It's not a housing collapse beacuse AirBNB units aren't "housing", they're rentals.

Collapsing the short term rental market means more homes available for long term rental or for purchase which means an EXPANDED housing market.
- Does a "housing collapse" only refer to supply? If supply increases and and prices plummet what do you call it?
  
  A buyers market
They keep calling them "homeowners". These are not "homeowners", these are "landowners" or "landlords". A homeowner is someone whose property is their primary residence. Homeowners are not having their taxes increased, just landlords.
Rental companies are buying up all the housing in Colorado. There will be no collapse.
I bought a house in the Denver metro area in 2015. I just sold it this past summer for more than twice what I originally bought it for. There's asset appreciation and then there's whatever the hell you call that.

I would not have been able to afford a house at current prices and I make considerably more than minimum wage. I don't know how people are doing it.
- We're not.
  
  I used to live on a farm where my boss owned a tow-truck business. The pandemic hit us hard and I couldn't afford the rent, so I had to sell my truck and move into a bachelor in the city. Six months ago I had to downsize again to a bedroom in a rooming house.
  
  Next move is the streets.
  
  I'm sorry to hear that. I hope things get better for you so that doesn't happen.
- I don't think they're doing it at all. I don't even see how anyone affords rent.
  
  Everyone I know with a house got it 10-20 years ago when shit was actually affordable.
- People seem to have forgotten that housing as generational wealth is meant to appreciate to a profit scale over generational spans of time.
  
  Traditionally housing on average has appreciated about the pace of inflation. Along with supply and demand on a local level for places growing or declining.
That's great news, tax them.
I love this. So excited for this to become a thing everywhere. Pay to play, multiple property owners. Pay to play.
Bills like this are sponsored by the hotel industry. Sucks that rents and property taxes are out of reach for most Americans. https://www.nytimes.com/2017/04/16/technology/inside-the-hotel-industrys-plan-to-combat-airbnb.html
This seems like a great idea.
Inelastic demand and capitalism. Made for each other. Not.

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