 Originally published at Texans for Fiscal Responsibility.
Texas is at a critical point in addressing its housing affordability crisis. As the property tax burden on Texans is at historic highs, the State’s housing market faces serious challenges that drive up costs and limit access to affordable homes. Solving this crisis requires a bold approach to removing restrictive zoning laws, reforming property taxes, and pursuing paths that enable true homeownership. Property Taxes are Soaring, Limiting Homeownership Property taxes in Texas have risen sharply in recent decades. Data from Texas Comptroller shows that total property taxes in Texas have skyrocketed from nearly $19 billion in 1998 to over $81 billion in 2023—a staggering 328% increase over 25 years. Most of this growth comes from school districts and local governments, where spending has far outpaced population growth and inflation. Despite the recent relief push, property taxes remain an ever-growing burden, keeping many Texans from achieving affordable homeownership. Restrictive Zoning Laws Inflate Housing Costs Restrictive zoning policies are another roadblock to affordable housing. By limiting where and what types of homes can be built, these zoning restrictions constrain housing supply, causing prices to rise. Opening up zoning could allow developers to build more homes, increasing competition and reducing costs for prospective buyers and renters. Such zoning reforms would enable the Texas housing market to meet demand more effectively, driving down prices and making homeownership more attainable for all Texans. The Case Against Rent Control and for Free-Market Solutions Some advocate for rent control to address housing affordability, but this policy only exacerbates the problem. Rent control limits lead to reduced housing supply, lower property maintenance standards, and an overall decline in housing quality. Texas should adopt free-market solutions instead of price controls that distort the market. Reducing zoning restrictions and property taxes provides a far more sustainable approach, encouraging private investment and expanding housing options without compromising quality. A Path to Property Tax Elimination True homeownership means owning a home without a continuous tax burden. For Texans to experience this freedom, we need a serious commitment to eliminating property taxes. Here’s a practical approach:
Several states are already exploring ways to move away from property tax dependence. For instance, North Dakota and Wyoming could soon eliminate property taxes, offering a potential model for Texas. By setting ambitious targets, these states show that property tax elimination isn’t just an idealistic vision—it’s a practical policy choice that puts residents on the path to true home ownership. Political Courage is Key Implementing these solutions requires political will and determination to prioritize Texans’ well-being over short-term spending interests. Texas lawmakers need to recognize that high property taxes are not just an inconvenience—they’re a barrier to affordable living, an obstacle to homeownership, and an economic drain that weakens communities. Texas can lead the nation in housing affordability and economic freedom by reducing zoning restrictions, enforcing strict levy limits, and working toward eliminating property taxes. Conclusion: A Sustainable Solution to Housing Affordability The housing affordability crisis in Texas won’t be solved overnight, but a commitment to sustainable, free-market reforms can provide real relief. By removing restrictive zoning, eliminating property taxes, and rejecting failed policies like rent control, Texas can make homeownership affordable and achievable for more people. Now is the time to pursue policies that support true homeownership, economic freedom, and prosperity for Texans. Let’s choose a path that addresses the root causes of our housing crisis, unleashing the potential for a thriving, accessible housing market.  Chairman Bettencourt and members of the committee, Thank you for holding this hearing. I am Dr. Vance Ginn, president of Ginn Economic Consulting, Texan, and father who is concerned about Texas's housing affordability crisis. While the state can’t address general inflation and interest rates, as those have been failures of Washington, policymakers can tackle restrictive local zoning and high property taxes. First, restrictive zoning regulations restrict the housing supply, driving up housing prices faster than many can afford.
Second, regarding the 11th most burdensome property taxes, achieving affordable housing means committing to eliminating them. 
These reforms can benefit Texans, but achieving them will require political courage. Combining local zoning reform with a path to eliminate property taxes provides a practical approach to housing affordability that the Legislature can accomplish in the next session. Thank you for considering these ideas to remove government obstacles and make housing affordable for Texans. Vance Ginn, Ph.D., is president of Ginn Economic Consulting and contributor to more than 15 think tanks, including Americans for Tax Reform and Texans for Fiscal Responsibility. Dr. Ginn was previously a lecturer at multiple higher education institutions, chief economist at the Texas Public Policy Foundation, and chief economist at the White House's Office of Management and Budget. He earned his doctorate in economics at Texas Tech University. Follow him on X.com at @VanceGinn and get more of his research at vanceginn.com. Listen to my interview here.
Write-up on my interview here: Young people are still trying to achieve the American dream of purchasing their first home but it's become increasingly more difficult in recent years. It's not as easy today to buy a home. Many people are living in apartments or townhomes instead of houses and some may also have a roommate or two to save money in an era of higher costs for housing. Texas-based Economist Vance Ginn calls it more of an American dream instead of the American dream because it's a different dream for everyone and young people are having to scale back their dreams of ending up in a bigger home. "Folks who are just starting in their careers and trying to find a house have had to downsize those aspirations on how big of a house they can get," he said. The high housing costs are a result of multiple things happening at the federal level but also at local levels too. Ginn said excessive government spending and the Federal Reserve printing too much money have been a recipe for this disaster. "There's a lot of local zoning regulations and other things that are hindering the supply of new homes being built," said Ginn. "This has contributed to housing unaffordability across the country." Former President Donald Trump has also said that government overspending as well as the mass amounts of illegal aliens coming into the country over the last four years have caused the demand for housing and prices to skyrocket. Ginn said that approach of deporting illegal aliens can help the situation but it doesn't fully address the supply issue. Vice President Kamala Harris has proposed building around three million new homes over the next few years and providing up to $25,000 in down-payment assistance to first-time buyers. Ginn said that would only increase the already high demand and the price of housing even more and the main focus should instead be on reducing inflation and federal spending. "Cutting government spending and reducing the debt will contribute to less inflation so that people can afford things like housing and food," Ginn said.  From The Freemen News-Letter.
Editor’s note: this piece was originally published here. A viral clip on X (formerly Twitter) has reignited the debate over rent control, and for good reason. The video features a New York City tenant, Hattie Kol, paying just $1,334 monthly for a 1,500-square-foot Upper West Side luxury apartment with fireplaces, chandeliers, and a butler’s pantry. This rent is well below the market rate and median rent in the city of $3,500. Her family acquired the unit through rent stabilization 22 years ago, allowing her to stay indefinitely. She is now paying only 39 percent of the median rent in the city, highlighting the mismatch created by rent control. While this may seem like a win for the tenant, it’s a loss for the broader market, particularly for lower-income renters forced to compete in an increasingly constrained housing market. At its core, rent control is a well-intentioned policy aimed at keeping housing affordable by capping rents. However, it disrupts the natural balance of supply and demand, discouraging developers from building new housing and disincentivizing landlords from maintaining or upgrading existing units. In the long run, this creates a housing shortage and degrades the quality of available units, all while keeping the most vulnerable renters stuck in a perpetual housing crisis. The Flawed Economics of Price Controls Rent control is a classic case of how price controls distort markets. By capping rents below the market rate, it prevents prices from reflecting the true quantity demanded and supplied for housing. This results in fewer new units being built and existing properties falling into disrepair because landlords have less incentive to invest in them. By reducing the quantity supplied of housing, rent control limits choices and increases the quantity demanded for the few units that remain on the market. The economic consensus against rent control is overwhelming. Nobel laureate economist Milton Friedman famously argued that price controls, including rent control, are among the surest ways to create shortages. In the case of housing, this policy leaves cities like New York with fewer affordable units and an overall decline in the quality of available housing. Who Benefits From Rent Control? While rent control is marketed as a tool to help low-income renters, the reality is quite different. Higher-income tenants often benefit the most, locking in rent-controlled units because they pay far below market value. In cities like New York and San Francisco, people who can easily afford market rates stay in these units for years, while low-income families face fierce competition for a limited number of affordable apartments. The woman in the viral clip is paying just 39 percent of the market rent, but there’s no evidence she needs that discount to survive. Meanwhile, those who do need affordable housing are crowded out. The result is a system where rent control helps the fortunate few while pushing the most vulnerable out of the market. Government Failures vs. “Market Failures” Proponents of rent control often cite “market failures” to justify government intervention. However, government failures are far more damaging, especially in housing. Rent control policies in places like New York and San Francisco have created severe housing shortages, leading to skyrocketing rents in the non-controlled market and forcing people to compete for fewer and fewer units. Take Houston, a city that has embraced more free-market housing policies. Without zoning laws or rent control, Houston has managed to maintain much more affordable housing by encouraging the free market to meet demand. Rather than dictating prices, the city has allowed builders and developers to respond naturally to market signals, increasing housing supply and lowering prices. The Unintended Consequences of Rent Control One of the greatest flaws in rent control is that it fails to address the underlying reasons for high rents. Instead of tackling restrictive zoning laws, excessive regulations, high property taxes, rising insurance, or other government-imposed barriers that drive up housing costs, rent control merely treats the symptoms. The result is fewer available units, a deteriorating rental stock, and even higher rents for those outside the rent-controlled system. Landlords, faced with below-market rents, often convert rental units into condos or leave them vacant rather than rent them out at lower rates. This leads to a further reduction in available rentals and worse living conditions for tenants. It’s a vicious cycle that harms the housing market and the people relying on it. The Path Forward: Embracing Free Markets The solution to housing affordability isn’t more government intervention — it’s less. Instead of imposing price controls that distort the market, governments should focus on reducing housing construction and investment barriers. This means reforming zoning laws, streamlining building regulations, and encouraging new development. By allowing the market to function freely, we can increase housing supply, drive down costs, and create more opportunities for people at all income levels. The viral clip on X is a powerful reminder of why rent control fails. While it may provide short-term relief for a select few, it harms the broader housing market and exacerbates the problems it purports to solve. If we want to make housing truly affordable, we need to let the market work — by encouraging development, reducing regulatory burdens, and allowing supply to meet demand. Let’s move beyond failed policies like rent control and embrace free-market solutions that benefit everyone, especially those needing affordable housing.  Originally published at AIER.
A viral clip on X (formerly Twitter) has reignited the debate over rent control, and for good reason. The video features a New York City tenant, Hattie Kol, paying just $1,334 monthly for a 1,500-square-foot Upper West Side luxury apartment with fireplaces, chandeliers, and a butler’s pantry. This rent is well below the market rate and median rent in the city of $3,500. Her family acquired the unit through rent stabilization 22 years ago, allowing her to stay indefinitely. She is now paying only 39 percent of the median rent in the city, highlighting the mismatch created by rent control. While this may seem like a win for the tenant, it’s a loss for the broader market, particularly for lower-income renters forced to compete in an increasingly constrained housing market. At its core, rent control is a well-intentioned policy aimed at keeping housing affordable by capping rents. However, it disrupts the natural balance of supply and demand, discouraging developers from building new housing and disincentivizing landlords from maintaining or upgrading existing units. In the long run, this creates a housing shortage and degrades the quality of available units, all while keeping the most vulnerable renters stuck in a perpetual housing crisis. The Flawed Economics of Price Controls Rent control is a classic case of how price controls distort markets. By capping rents below the market rate, it prevents prices from reflecting the true quantity demanded and supplied for housing. This results in fewer new units being built and existing properties falling into disrepair because landlords have less incentive to invest in them. By reducing the quantity supplied of housing, rent control limits choices and increases the quantity demanded for the few units that remain on the market. The economic consensus against rent control is overwhelming. Nobel laureate economist Milton Friedman famously argued that price controls, including rent control, are among the surest ways to create shortages. In the case of housing, this policy leaves cities like New York with fewer affordable units and an overall decline in the quality of available housing. Who Benefits From Rent Control? While rent control is marketed as a tool to help low-income renters, the reality is quite different. Higher-income tenants often benefit the most, locking in rent-controlled units because they pay far below market value. In cities like New York and San Francisco, people who can easily afford market rates stay in these units for years, while low-income families face fierce competition for a limited number of affordable apartments. The woman in the viral clip is paying just 39 percent of the market rent, but there’s no evidence she needs that discount to survive. Meanwhile, those who do need affordable housing are crowded out. The result is a system where rent control helps the fortunate few while pushing the most vulnerable out of the market. Government Failures vs. “Market Failures” Proponents of rent control often cite “market failures” to justify government intervention. However, government failures are far more damaging, especially in housing. Rent control policies in places like New York and San Francisco have created severe housing shortages, leading to skyrocketing rents in the non-controlled market and forcing people to compete for fewer and fewer units. Take Houston, a city that has embraced more free-market housing policies. Without zoning laws or rent control, Houston has managed to maintain much more affordable housing by encouraging the free market to meet demand. Rather than dictating prices, the city has allowed builders and developers to respond naturally to market signals, increasing housing supply and lowering prices. The Unintended Consequences of Rent Control One of the greatest flaws in rent control is that it fails to address the underlying reasons for high rents. Instead of tackling restrictive zoning laws, excessive regulations, high property taxes, rising insurance, or other government-imposed barriers that drive up housing costs, rent control merely treats the symptoms. The result is fewer available units, a deteriorating rental stock, and even higher rents for those outside the rent-controlled system. Landlords, faced with below-market rents, often convert rental units into condos or leave them vacant rather than rent them out at lower rates. This leads to a further reduction in available rentals and worse living conditions for tenants. It’s a vicious cycle that harms the housing market and the people relying on it. The Path Forward: Embracing Free Markets The solution to housing affordability isn’t more government intervention — it’s less. Instead of imposing price controls that distort the market, governments should focus on reducing housing construction and investment barriers. This means reforming zoning laws, streamlining building regulations, and encouraging new development. By allowing the market to function freely, we can increase housing supply, drive down costs, and create more opportunities for people at all income levels. The viral clip on X is a powerful reminder of why rent control fails. While it may provide short-term relief for a select few, it harms the broader housing market and exacerbates the problems it purports to solve. If we want to make housing truly affordable, we need to let the market work — by encouraging development, reducing regulatory burdens, and allowing supply to meet demand. Let’s move beyond failed policies like rent control and embrace free-market solutions that benefit everyone, especially those needing affordable housing.  Originally published at The Center Square.
As Americans face skyrocketing rents, the Biden administration's Department of Justice has turned its sights on RealPage, a software company accused of promoting anticompetitive practices by helping landlords adjust prices. But this lawsuit misses the mark. It's not private-sector tools like RealPage driving up housing costs — it's government-induced inflation, elevated interest rates, restrictive zoning laws, and excessive property taxes that artificially inflate housing prices. Instead of targeting software that improves market transparency, the DOJ and policymakers should address the real culprits behind high housing prices. RealPage's algorithm offers data-driven pricing suggestions based on actual market conditions, not arbitrary calculations. Critics claim the software allows landlords to "collude," but this misrepresents its function. The software simply enhances transparency by reflecting actual rental prices in the market — similar to dynamic pricing used in airlines and retail. Landlords maintain their freedom to reject the pricing suggestions, and renters retain their sovereignty to choose where to live. This isn't price-fixing; it's the market working as it should. In a related misguided move, San Francisco has outright banned RealPage and similar tools from being used. This ban restricts transparency in one of the most expensive housing markets in the country, making it harder for landlords and renters to have an accurate picture of real-time market dynamics. In a city where progressive housing policies have already exacerbated costs, cutting off a tool that provides clarity is a bad idea. Instead of helping alleviate the housing crisis, San Francisco's decision to ban these tools further compounds the issue by limiting market information. The DOJ's case relies on the false assumption that landlords blindly follow RealPage's recommendations, but this patronizing narrative overlooks the realities of market behavior. Algorithms don't set rents — supply and demand do. RealPage helps landlords better understand market conditions, increasing efficiency and transparency. It's a tool for better decision-making, not a means of manipulating prices. Blaming RealPage is a convenient distraction from the real problem: the government's role in inflating prices. Since 2020, Congress's massive deficit spending has given the Federal Reserve ammunition to pump trillions of dollars into the economy, driving up prices, including rents. Since the pandemic, rents have risen by over 20%. Instead of addressing these causes of inflation, the administration is scapegoating private actors like RealPage to avoid accountability for its failed policies. In addition to inflationary pressures from Washington, state and local governments exacerbate the housing crisis with restrictive zoning laws that limit new construction and burdensome property taxes that raise costs for homeowners and landlords, ultimately passed down to renters. In cities like San Francisco, these regulations artificially limit housing supply, pushing prices higher. If policymakers were serious about addressing housing costs, they would focus on removing these government-imposed barriers, not attacking private sector tools like RealPage. Markets work better when participants have access to more information—not less. Algorithms like RealPage's provide landlords with real-time data about market conditions, allowing for more efficient price adjustments based on supply and demand. In an environment with a housing shortage and just three months of housing inventory available at current demand, the market must be allowed to operate freely without heavy-handed government intervention. Dynamic pricing mechanisms efficiently allocate scarce resources, ensuring that housing units are priced according to their value in the marketplace. This is no different from how airlines price seats based on demand or how restaurants adjust prices for specials. Attacking this type of transparency ignores how these markets actually function, benefiting consumers and businesses by improving price discovery. Rather than embracing market-based solutions, the DOJ is wasting time attacking private innovation. Instead of scapegoating software, policymakers should focus on spending less, lowering interest rates, easing local zoning restrictions, reducing property taxes, and encouraging new construction. This would increase the housing supply relative to demand, reduce prices, and address the real root causes of the housing crisis. RealPage and similar tools are part of the solution, providing better information and transparency in an already constrained housing market. The Biden administration's misguided focus on private actors won't lower prices —free-market reforms will. Unlock the Secrets of Housing Market Regulations and Real Estate Growth!
Discover how housing market regulations are reshaping real estate growth and affordability in 2024. Join Mike Mills and economist Vance Ginn, Ph.D., as they dive deep into the key policies, economic strategies, and insider insights every real estate professional needs to know. In this episode, you'll learn about the critical changes in housing market regulations and how they impact real estate growth and home affordability. Understand how fiscal policy, zoning laws, and commission structures are influencing market dynamics. Vance Ginn provides expert analysis on navigating these challenges to help Realtors and real estate professionals thrive in today's evolving landscape. Key Takeaways: Housing Market Regulations Explained: Learn how recent policy changes affect home prices, market competition, and Realtor strategies. Impact of Economic Policies: Understand how inflation, interest rates, and government spending shape the real estate market and what it means for your business. Navigating Property Tax Reforms: Discover actionable strategies to adapt to changes in property tax policies and maintain your competitive edge. Leveraging Knowledge for Growth: Get expert tips on using economic insights to drive real estate growth and stay ahead of market shifts. Don't miss out on these game-changing insights that could redefine your approach to real estate. Watch now to stay informed and ahead of the curve in 2024! 🔔 Like, Comment, and Subscribe for more in-depth discussions on real estate trends and strategies. Share your thoughts on the episode in the comments below and let us know which topic you'd like to see next! Links and Social Media: 🌐 Podcast Website: https://www.thetexasrealestateandfina... 🏠 Mike Mills Mortgage Website: www.millsteammortgage.com 📊 Vance Ginn's Website: https://www.vanceginn.com/ Join my conversation with Dr. Judge Glock, director of research and a senior fellow at the Manhattan Institute, on the latest Let People Prosper Show podcast.
We explore: 🗽 America's Economic Landscape: What's working and what's not? 🏠 Housing Market Fixes: Key issues and practical solutions. 💸 Debt Crisis Solutions: National and local debt challenges and how to tackle them. Like, subscribe, and share the Let People Prosper Show, and visit vanceginn.substack.com and vanceginn.com for more. Pros and Cons of Using a Home Equity Line of Credit to Pay Off Your Mortgage: Interview on NTD News5/22/2024
With house prices surging recently, the average American homeowner now has around $300,000 of equity in their home. With the cost of living also soaring, many homeowners are considering taking out a home equity loan, or HELOC, to pay off their mortgage. But how exactly do such lines of credit work, and are they a good idea?
NTD’s Evelyn Li spoke with Vance Ginn, the former chief economist at the White House’s Office of Management and Budget and the president of Ginn Economic Consulting, to find out more. Interview on NTD News on May 22, 2024: https://www.ntd.com/pros-and-cons-of-using-a-home-equity-line-of-credit-to-pay-off-your-mortgage-economic-consultant_994520.html  Originally published at Dallas Express.
Home “owners” in Dallas and surrounding cities find themselves grappling with the weight of unaffordability as property taxes soar, increasing by $120 million despite the touted cuts at the end of 2023. A recent study reveals the burden on renters in Texas and nationwide, with many paying over 30% of their monthly income on housing. A factor contributing to this rising cost of renting, and housing in general, is soaring property taxes. The predicament stems from excessive state and local spending and purported property tax “cuts” that too often merely shift the burden through exemptions. Renters, technically anyone with a monthly payment or a mortgage since homeowners are just renting from the government, bear the brunt of this financial strain, emphasizing the urgent need for fiscal reform. Late last year, Dallas residents witnessed a modest one-cent property tax reduction rate, with surrounding cities experiencing varying degrees of reduction. Fort Worth saw a 4-cent reduction, and McKinney a 3-cent reduction. Despite these adjustments, most cities, including Dallas, faced increased property taxes eclipsed by rising spending and housing appraisals. Even in Plano, recognized for its low property taxes in the DFW area, homeowners will endure higher monthly property tax amounts due to home valuation hikes. The incongruity between property tax decreases and housing cost increases is alarming, prompting a closer look at the numbers. According to Axios, the average taxable value of homes in Denton County rose from approximately $402,000 in 2022 to around $449,000 in 2023. Similarly, the average market value of Collin County homes increased from about $513,000 in 2022 to roughly $584,000 in 2023. One doesn’t need to be a mathematician to recognize how a property tax decrease of even a few cents doesn’t begin to keep pace with skyrocketing home valuations and rent. No wonder 20% of Dallas homebuyers looked to get out of the city last year. The crux of the issue lies in reining in local spending. The axiom holds: the burden of government is not how much it taxes but how much it spends. Dallas, with its escalating budget that reached a historic high last year, renders proposed property tax cuts inconsequential. My new research released by Texans for Fiscal Responsibility highlights how property taxes continued to go up last year by $165 million, even with the Texas Legislature passing $12.7 billion in new property tax relief. This ended up being the second largest property tax relief in Texas history, not the largest as many politicians have been claiming since last July, which is what I wrote then. The best path for Texans is to finally have their right to own their prosperity instead of renting from the government by paying property taxes forever. This can be done by restraining state and local government spending and using resulting state surpluses to reduce school property tax rates until they’re zero. And by local governments, including Dallas, using their resulting surpluses to reduce their property tax rates until they’re zero. Dallas must adopt a spending limit, one that does not permit the budget to exceed the rate of population growth rate plus inflation – a measure aligned with what the average taxpayer can afford. Performance-based budgeting and independent efficiency audits, preferably conducted by private auditors, should identify opportunities for improvements and reductions in ineffective programs, helping provide more opportunities for property tax relief. Dallas leaders can empower their constituents by redirecting taxpayer money to them while funding limited government. The adoption of these strategic measures not only benefits homeowners but extends its positive impact to renters and business owners, providing tangible rewards for their hard work and fostering a more economically vibrant community. Dallas leaders are responsible for ushering in a new era of fiscal responsibility that ensures affordability for all residents and supports sustained economic growth. The path to long-lasting property tax relief is clear: let’s seize this opportunity for positive change and secure a brighter, more prosperous future for Dallas. Episode 77 is with Dr. Mark Calabria, former chief economist of former Vice President Mike Pence, senior advisor at Cato Institute, and author of “Shelter from the Storm: How a COVID Mortgage Meltdown Was Averted.”
Today, we discuss: 1) His lessons learned from working as Former Vice President Mike Pence's chief economist; 2) How he helped the nation avert a mortgage crisis during COVID and issues with pandemic policies and their ongoing impacts; and 3) Why was the economy in 2019 so successful, and what should be done to improve things in 2024? Check out Mark's book: https://www.cato.org/books/shelter-storm Please like this video, subscribe to the channel, share it on social media, and provide a rating and review. Also, subscribe and see show notes for this episode on Substack (www.vanceginn.substack.com) and visit my website for economic insights (www.vanceginn.com). Click below to watch the episode and read on for show notes: Today, I cover:
1) National: Shocking findings from the Fraser Institute's newest "Economic Freedom of the World Report," especially as it relates to the U.S. and Hong Kong, the Fed not raising interest rates, and the average 30-year mortgage rate reaching its highest since Nov. 2000; 2) States: My new co-authored report published by the Pelican Institute highlighting how Louisiana could become "the next big thing” with tax reform and responsible budgeting, and why Colorado's Taxpayer's Bill of Rights (TABOR) is under attack; and 3) Other: My recent articles on the DOJ's antitrust lawsuit against Google and Constitution Day. You can watch this TWE episode and others along with my Let People Prosper Show on YouTube or listen to it on Apple Podcast, Spotify, Google Podcast, or Anchor. Please share, subscribe, like, and leave a 5-star rating! For show notes, thoughtful insights, media interviews, speeches, blog posts, research, and more, please check out my website (www.vanceginn.com) and subscribe to my newsletter (www.vanceginn.substack.com), share this post, and leave a comment. Click below to watch the episode and read on for show notes: We discuss:
1) Why he believes an economic bust is coming based on lending activities and economic indicators, and where there's corruption in the banking industry; 2) How high home mortgage rates after low rates during the pandemic are restricting supply, and how this affects the housing market; and 3) How the U.S. can rebuild its waning creditworthiness by Congress balancing the budget and putting taxpayer dollars to better use, and his thoughts on the Teacher Retirement System of Texas. Dory’s bio:
For show notes, thoughtful insights, media interviews, speeches, blog posts, research, and more, please check out my website (www.vanceginn.com) and subscribe to my newsletter (www.vanceginn.substack.com), share this post, and leave a comment. TRUTH On Inflation, Housing Market, Interest Rates, & Incentives w. Dr. Chuck Beauchamp | Ep. 445/16/2023
In today's new episode of the "Let People Prosper" podcast, I'm thankful to be joined by Dr. Chuck Beauchamp for a thought-provoking discussion on new inflation numbers and the current economy. We discuss: 1) The newest inflation numbers and how the rate is impacting various markets including food, housing, and energy; 2) Interest rates' impact on the housing market and the crisis of affordability; and 3) Why the U.S. dollar's status could continue to wane and more. You can watch this interview on YouTube or listen to it on Apple Podcast, Spotify, Google Podcast, or Anchor (please share, subscribe, like, and leave a 5-star rating). Chuck’s bio:
Find show notes, thoughtful economic insights, media interviews, speeches, blog posts, research, and more here at my website (https://www.vanceginn.com/) or Substack newsletter (https://vanceginn.substack.com). Please subscribe to the newsletter, share it with your friends and family, and leave me a comment.  It's no secret that relocators have recently favored moving to Florida. Recent data from the Florida Department of Motor Vehicles shows that people from New York, New Jersey, and California are among the states with the most people applying for Florida driver's licenses. In fact, according to the New York Post, the data showed that around 30,000 Californians applied for a Florida license in 2022.
Economist Vance Ginn believes he knows one of the major reasons that Californians are coming to Florida, and he believes it is fueled in part by saving money, as follows. Cheaper Housing Fueled by Fewer Roadblocks to Real Estate Development: Ginn, who is chief economist at the Pelican Institute for Public Policy, recently co-authored an opinion piece in the Washington Examiner. In it, he laid out his argument that the primary motivation for relocating Californians to Florida and Texas is housing affordability, writing, in part: "Housing affordability has been a major factor driving Californians to states such as Texas and Florida, where they can realistically afford the American dream of owning a home."Ginn further explains that Florida and Texas have less expensive housing because they implement fewer "bureaucratic bottlenecks" for real estate development, writing: Florida has done a good job winning the war against excessive regulation to make way for more home construction...It’s not complicated: The states and cities that will prosper in the coming decade will be those that allow a less regulated housing market so the quantity of housing supplied can efficiently meet the quantity demanded." U.S. News & World Report did conclude that California was the most regulated state in America. And although Ginn's article is written as an opinion piece, there is some evidence to support some of its claims, as follows. California has 4 of the 10 Most Expensive Cities in the United States: According to a 2022 study by Rocket Mortgage, the markets of San Francisco, Los Angeles, San Jose, and San Diego were among the 10 most expensive cities in the United States, making up almost half of the country's most expensive places to live. Generally Speaking, Housing in California is Much More Expensive than Housing in Florida: Although Florida's real estate markets have risen dramatically, they are still reasonably priced when you compare them to California's. According to Zillow, the average home value in Florida is $404,939. In California, that same number is $760,644. So while some Floridians and those wishing to buy a home in Florida may lament the rising real estate markets, someone coming from California may see Florida real estate prices as a bargain. Differences in State Income Tax: Although Ginn's writings didn't bring up the differences in state income tax, there are key differences between these two states that affect the cost of living. California's state income tax ranges from rates of 1% to 12.3%, and the sales tax rate is 7.25% to 10.75%. Florida does not have a state income tax, and its sales tax rate is 6%. Originally published at Newsbreak. |
Vance Ginn, Ph.D.
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