70% of Americans can’t afford a median home. Why?
Broken money forced people to use real estate as savings, making homes unaffordable. Houses aren’t savings accounts, they’re meant to be lived in.
#Bitcoin demonetizes housing, drives prices down and puts families back in homes.
https://blossom.primal.net/64276f87e5c74dd5b0981a8c5227aaf0aa04182b660479f152f5aeb0eb5c5db5.mp4
While I agree with the sentiment that demonetizing residential real estate is important for long-term affordability, folks need to understand that the way your community funds it's fire, police, parks and schools is through a local property tax levied on the fiat value of a home.
Cratering fiat housing prices mean cratering local public services. We only want the demonetization to occur when measured in BTC because we haven't solved how to fund public community services in another way yet.
I find this a very interesting point. Yes, today local services depend on fiat property taxes, so we only want housing to demonetize in BTC terms. Under a Bitcoin standard, funding would come through direct BTC taxes, usage fees, local responsibility, and leaner, transparent budgets - rather than hiding behind inflation. I suppose that’s the challenge.
It would be possible to adjust the property tax rate to account for the drop in price.
The challenge here is that you reinforce the spiral. There are indeed communities with levy rates of 18-25%+ but it is generally a sign the community is financially insolvent. The individual and community incentives are in conflict.
That is in the current paradigm. If house prices fall because they no longer need to be stored of value higher % rates would not necessarily signal the same thing that they do now.
Say the current rate is 4% which = $1000. If house prices fall so that $1000 is now 25% the actual dollar value being paid is the same but the house prices are more affordable.
Or am I missing something?
