On the NewsHour today, a guy named Jack Hough laid out why it's dumb to give tax credits to new homebuyers, and why it would be better in general to rent as opposed to buying. This point, especially, really stuck with me:
If the three of us decided to go in together on a real estate investment and I said, gentlemen, I have a plan, we will build a 3,000-square-foot house that will fit only one family, you would say to me, that's not a very good plan. We should build a building where we can maximize the amount of rent that flows through it, and have people with just as much living space as they need.
The single-family house in America is almost a poor investment by design. Go back 30 years, and you had houses that were 1,700 square feet. Today, they have come down over the past year a little bit, but they're still 2,400 square feet, even though the size of the average American family has gotten smaller over that time.
Watch the whole damn video:
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