Helping the Housing Industry
In the current state of the economy, one thing is sure to either help it bounce back or keep it in the basement, and that is the housing industry. It is very hard to drive anywhere and not see a “for sale” sign or two sitting in front yards. People have lost jobs or been cut back, and therefore driven out of their homes they once loved for something cheaper that they can afford. Not only did this hurt each individual family, it hurt the economy as a whole. People who still have their houses and can afford them are losing money on them because the value of their houses has dropped due to the other houses in their neighborhood sitting empty.
There are many different ways that could possibly help this crisis in the housing industry. The first and foremost would be to stop building houses. So many places are still building houses, while other houses sit across the street empty. Some argue that news houses will bring higher value to the surrounding houses, which in theory may actually happen. The only problem with that is while they fill the newly built houses, the old ones still sit empty. Once all the new houses are full, there will still be the same ones empty. So that window of a couple of months or maybe even a year that it may take to fill theses houses will look great on paper as far as the value of houses going up, but it will soon decline again. We do not want it to decline, that would not dig us out of the recession, just dig us out of a moment of the recession.
There are a few problems with stopping the building of houses. The two mains ones would be that building houses creates jobs. Those who build houses, especially those who have been doing it for many years, usually do not have the skills to find a different type of job. Some may be to old to make it worth their while to go back to school and learn a new profession.
Another problem with stopping the building of new houses would be that a lot of companies, businesses, cities, states, etc., have all ready budgeted the money for these housing projects. They set aside money years ago in preparation for these projects and have them locked into a commitment to do these houses.
My solution for both is the same, put everything into the old houses. I understand that legal contracts may have been built up, and since I am not a lawyer, I am not going to pretend that I know that there is a way to get out of them or anything along those lines, but at least try. You also can not stop building where you have all ready broke ground. But, for those that may not have the contracts solidified yet, or have not broke ground, but have the money budgeted for the project, the solution is simple, change where that money goes. Budgets are changed all the time. I am a teacher and our budgets have been changed plenty in the past year along with our salaries, so I know it can be done.
Take that money and put it into the houses that all ready exist. A...