Wednesday, July 16, 2008

This seems so obvious...

At 2.9%, the home-owner vacancy rate, which measures the share of vacant homes for sale, has reached its highest point since measurement began in 1956. But forget the complicated bail out plans being crafted by politicians to help the housing sector. All you have to do is reduce supply, and prices will increase:
Unlike mortgage bail-outs, this policy does not encourage risky lending. However, it requires cities to spend money on demolition merely to lose money through reduced taxes.

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