{"id":16761,"date":"2020-08-26T10:32:48","date_gmt":"2020-08-26T17:32:48","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=16761"},"modified":"2020-08-26T15:25:16","modified_gmt":"2020-08-26T22:25:16","slug":"ask-the-broker-why-dont-more-poor-people-own-their-own-homes","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16761\/ask-the-broker-why-dont-more-poor-people-own-their-own-homes\/","title":{"rendered":"Ask the Broker: Why don\u2019t more poor people own their own homes…?"},"content":{"rendered":"

\"\"<\/p>\n

Why isn\u2019t there more opportunity for poor people to own their homes?<\/p><\/blockquote>\n

If you were to substitute the word \u201chorses\u201d for \u201chomes\u201d, the question would answer itself, wouldn\u2019t it? Poor people rent rather than own because their income is too low, their credit scores are too low, or their debt-to-income ratios are too high. That much is not rocket science, and it would apply to any other expensive financed possession we might name.<\/p>\n

People very enamored of coercive charity can imagine circumstances in which financially unqualified people are given homes \u2013 or are given heavy subsidies toward buying homes. But this can only happen by taking wealth away from other people \u2013 people who have earned that wealth and deserve every penny of it. Poor people might get more<\/em> home than they have earned, but only because other people are getting less<\/em> home than they deserve. This kind of redistribution of purported injustice is made possible only by force \u2013 and, by my reckoning, that force is the most vicious injustice of all.<\/p>\n

But, even so, there are two persistent problems. First, people tend not to respect what they did not have to earn and deserve. This is nicely illustrated by the awful condition of free or subsidized housing all over the world.<\/p>\n

Moreover, unless the problem is to repeat itself, the poor recipients of subsidized housing would have to be forbidden from selling it at its true appreciated value \u2013 lest it become unobtainable by other poor people in the future.<\/p>\n

Many poor people do not buy homes because for whatever reason they don\u2019t develop the attributes of mind, character and behavior that lead to homeownership. And, even if they were to be given free or heavily-subsidized homes, the restrictions that would have to be placed on the sale of those homes would prevent those poor people from profitably developing those same attributes of mind, character and behavior even after they have become homeowners \u2013 in name only…<\/p>\n

As it happens, we got to see practical examples of these ideas in the housing collapse. We know about CDOs (collateralized debt obligations \u2013 big bundles of bad Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Why isn\u2019t there more opportunity for poor people to own their homes? If you were to substitute the word \u201chorses\u201d for \u201chomes\u201d, the question would answer itself, wouldn\u2019t it? Poor people rent rather than own because their income is too low, their credit scores are too low, or their debt-to-income ratios are too high. That […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[212,5],"tags":[],"class_list":{"0":"post-16761","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-flourishing","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":443,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/443\/blogoff-post-66-ask-the-broker-homeownership-and-the-poor\/","url_meta":{"origin":16761,"position":0},"title":"Blogoff Post #66: Ask the Broker: Homeownership and the poor . . . ?","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"From my sister-in-law:Why isn't there more opportunity for poor people to own their homes?If you were to substitute the word \"horses\" for \"homes\", the question would answer itself, wouldn't it? Poor people rent rather than own because their income is too low, their credit scores are too low, or their\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":32,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/32\/how-the-grinch-stole-home\/","url_meta":{"origin":16761,"position":1},"title":"How the Grinch stole home…","author":"Odysseus","date":"December 23, 2005","format":false,"excerpt":"Interest rates are down, Gas prices are down, housing starts nationwide are up, and home prices in the Valley are up, so you know what that means. Yup, the sky is falling yet again. Affordable homes are vanishing. Vanishing! It must be the Grinch, slinking around with a bottomless bag\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2917,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2917\/redfincom-wakes-up-smells-coffee-staples-galoshes-to-forehead-now-redfin-buyers-will-be-able-to-see-homes-in-an-almost-normal-way\/","url_meta":{"origin":16761,"position":2},"title":"Redfin.com wakes up, smells coffee, staples galoshes to forehead: Now Redfin buyers will be able to see homes in an almost-normal way","author":"Greg Swann","date":"April 8, 2008","format":false,"excerpt":"The uncontested brilliance of the free market is that it is self-correcting. People like me have been bitching all along that Redfin.com's approach to buyer representation was misguided if not outright evil. Conceding some huge chunk of the buyer's agent's commission to the buyer was certainly consumer-friendly, but pushing the\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18064,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18064\/overnight-news-inverting-justice-to-sate-the-mob-turns-out-to-be-a-poor-idea\/","url_meta":{"origin":16761,"position":3},"title":"Overnight News: Inverting justice to sate the mob turns out to be a poor\u00a0idea.","author":"Greg Swann","date":"April 20, 2021","format":false,"excerpt":"I deliberately do not watch incendiary videos, since the purpose \u2013 invariably \u2013 is to misrepresent the truth. As came out in trial testimony, Derek Chavin not only did nothing wrong, everything he did was exactly as he had been trained to do. A well-trained officer took charge of an\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2850,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2850\/flipping-homes-a-closer-look\/","url_meta":{"origin":16761,"position":4},"title":"Flipping Homes: A Closer Look","author":"Mike Farmer","date":"March 29, 2008","format":false,"excerpt":"First of all let me say that I distinguish between fraud and flipping. When professionals collude to trick sellers into taking a low price, then flip the home for a profit in a short time, this is not what I'm talking about, and it shouldn't cloud the issue of flipping.\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4692,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4692\/promoting-affordable-housing\/","url_meta":{"origin":16761,"position":5},"title":"Promoting Affordable Housing","author":"Brian Brady","date":"September 27, 2008","format":false,"excerpt":"I didn't believe it when I read it; the bailout bill is \"earmarked\" and ACORN is one of the beneficiaries of the largesse. \u00a0 ACORN may control up to 20% of the $700 billion proffered by the Bush\/Obama Bailout Plan. ACORN?\u00a0 Are you kidding me?\u00a0 THIS is what ACORN really\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16761","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=16761"}],"version-history":[{"count":4,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16761\/revisions"}],"predecessor-version":[{"id":16767,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/16761\/revisions\/16767"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=16761"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=16761"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=16761"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}