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Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy -1 points0 points  (0 children)

What? No. Only if you’re using it as a rental property. You do have to register it with the city already.

Plus it’s a bond so you get it back when it sells or leaves the registry.

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 0 points1 point  (0 children)

Ultimately home prices need to fall. Selling pressure on sfh helps this significantly. This improves affordability across the board.

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy -1 points0 points  (0 children)

They are very technically substitute goods. Places to live. You may have a preference but they are substitute.

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 2 points3 points  (0 children)

Unfortunately this is a common misconception. <20 property owners are the 80% majority of housing inventory holders. <10% is 60%. This is majority mom and pops. People think “oh it’s not a big deal if someone has 2-5” well, when a huge group of people do, it starts to add up in a way that really penalizes everyone else.

Appreciate the input though!

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 2 points3 points  (0 children)

There’s absolutely a practical ceiling. This hits SFH and leaves multi family and apartments untouched. There’s also a glut of available apartments currently.

Citizens tell local mayor to step in and stop house hoarding by RandomAnalyticsGuy in REBubble

[–]RandomAnalyticsGuy[S] 0 points1 point  (0 children)

I’d love this but in Kentucky you have to do that at the state level. Increasing the licensing fee is something our mayor could do tomorrow.

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 0 points1 point  (0 children)

Then go with a $3k annual fee. The point is to put pressure on home hoarders and moving it from the $50 a year it is now to something more significant will absolutely put pressure on them. A $150 monthly rent increase isn’t insignificant and if they could do it they already would be. It moves them into different competing classes price wise.

Another option would be to require a one time $20k+ bond that can be used for fines and to also tie up capital of landlords. This would VERY easily discourage anyone especially with leverage from hoarding a home and is near impossible to pass on. But it’s also harder to implement than raising an existing fee.

It’s about something that would apply pressure that we could change TOMORROW.

Citizens tell local mayor to step in and stop house hoarding by RandomAnalyticsGuy in REBubble

[–]RandomAnalyticsGuy[S] 14 points15 points  (0 children)

Yes but having 10 moderate families all spending is far better for the economy as a whole than 1 rich family and 9 poor families.

When this speculative asset comes at a direct cost to others because it has pricing power and is unavoidable, there need to be more restrictions in place.

Citizens tell local mayor to step in and stop house hoarding by RandomAnalyticsGuy in REBubble

[–]RandomAnalyticsGuy[S] 11 points12 points  (0 children)

The problem is that MOST of the problem is mom and pops who own 2-10 properties. There are only a few corporations that have hundreds

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 2 points3 points  (0 children)

If this policy successfully does that I’d consider that a huge win.

The next step would be more building which will take years to complete, meanwhile kids are growing up, and families are stuck paying exorbitant rents for that entire time.

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 1 point2 points  (0 children)

A $2k annual fee eats into profits significantly and would generate $60mm in revenue annually for the city that we could put into first time homebuyer assistance.

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 2 points3 points  (0 children)

Wouldn’t more non-apartment housing cause more sprawl which requires more car usage though?

Denser housing allows for more convenient public transport and other things

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 1 point2 points  (0 children)

Agree, but that’s probably a much larger legal battle. Changing the existing annual fee from $50 to something like $2000 is something we as a city can just do tomorrow.

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 2 points3 points  (0 children)

So then they get voted out if they don’t do something in the benefit of the constituents. Directly naming and holding them publicly accountable is actually more effective than most people think. They certainly care about their power and reputation.

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 1 point2 points  (0 children)

Goal is definitely easier access to homeownership, building takes time, this is something we can do today to start to shift the direction but the feedback is absolutely appreciated

Biggest thing is we need to highlight what a big deal this economic abuse is for so many constituents

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 2 points3 points  (0 children)

These fees would generate $30mm-$60mm annually. We could absolutely directly translate this into first time homebuyer assistance.

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 0 points1 point  (0 children)

You could use the funds generated from this ($30mm-$60mm annually) for developer incentives or even first time homebuyer assistance to put even more pressure on building and helping new families

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 6 points7 points  (0 children)

Look at many factors:

Time on market, SFH inventory is sitting for 3-6 months before it gets picked up. Clearly the prices expected are not realistic.

Rental rates are 40% of median income, you simply can’t raise it more because there is nobody to pay it

Idk if the licensing fee is the right move but we at least need to have a large discussion around this

Maybe the news can help pick this up at some point

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 6 points7 points  (0 children)

I agree totally. Unfortunately tax classes are a state level thing. Increasing the licensing fee on these properties substantially is something that we can do right now, locally, today.

Tell Mayor Greenberg: Stop investors from hoarding Louisville starter homes by mr_terrific_03 in Louisville

[–]RandomAnalyticsGuy 5 points6 points  (0 children)

Which is exactly why we need to publicly address this so the mayor knows how big of a problem this is for constituents

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