Housing prices are artificially high because of debt and finance.
If loans/debt/financing/mortgages were made illegal, then these artificial high housing prices based on the credit line one can obtain rather than what one can actually afford, prices would come down to fair market value. I know people will claim credit is based on what one can afford but that is mental gymnastics (foreclosures, student loan defaults, car repos, and credit card defaults could all suggest otherwise)and wouldn’t matter if credit were made illegal.
The same is true of student loans. Tuition costs couldn’t continue to exponentially (artificially) increase based on the guarantee of government loans to students to cover these costs, take away a the loans and the prices will meet the new demand.
If loans/debt/financing/mortgages were made illegal, then these artificial high housing prices based on the credit line one can obtain rather than what one can actually afford, prices would come down to fair market value. I know people will claim credit is based on what one can afford but that is mental gymnastics (foreclosures, student loan defaults, car repos, and credit card defaults could all suggest otherwise)and wouldn’t matter if credit were made illegal.
The same is true of student loans. Tuition costs couldn’t continue to exponentially (artificially) increase based on the guarantee of government loans to students to cover these costs, take away a the loans and the prices will meet the new demand.