It's not so easy as just raising the fed fund rate. If those landlords/airbnb folks/whoever are at a fixed rate they're going to be immune from interest rate fluctuations. You might shake a few out that have adjustable rate mortgages with rising rates, but most of that housing stock is probably gone. A higher fed funds rate will prevent more of it from falling into landlord hands, but it also makes it harder for individuals to buy.
The solutions are political - more house building, guillotines, rent caps and rent stabilization, tenant rights.
The difference is in the entity taking out the loan. Balloon loans and ARMs were very easy to give out to individuals before the crash, now I think we have more entities on fixed rate mortgages or buying in cash. The make up is different and the crash will look different. I suspect more like a consolidation of landlords then what we saw in 2008 unless the economy gets real rough
It's not so easy as just raising the fed fund rate. If those landlords/airbnb folks/whoever are at a fixed rate they're going to be immune from interest rate fluctuations. You might shake a few out that have adjustable rate mortgages with rising rates, but most of that housing stock is probably gone. A higher fed funds rate will prevent more of it from falling into landlord hands, but it also makes it harder for individuals to buy.
The solutions are political - more house building, guillotines, rent caps and rent stabilization, tenant rights.
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The difference is in the entity taking out the loan. Balloon loans and ARMs were very easy to give out to individuals before the crash, now I think we have more entities on fixed rate mortgages or buying in cash. The make up is different and the crash will look different. I suspect more like a consolidation of landlords then what we saw in 2008 unless the economy gets real rough