Watch this Youtube video. It shows a homebuilder company hiring a backhoe to destroy the homes they just built because they can't sell the homes for the price they're asking for and they're losing money by keeping the homes built because of all the property taxes and maintinence fees involved with posessing the homes.
Watching this is tragic. When I watch it, I think of all the homeless people in California who might be able to live in this home. The reason they're not being allowed to live in these homes is because there are polititians in this country who believe home prices should be kept high. They want to protect the value of the assets of homeowners so they tell the homebuilders that they can't sell their homes for too low of a price. They've built far too many homes already and there's no hope of making a profit on those so they ought to just liquidate those homes and get whatever they can get for them. There are way too many homeless people in this country and the way to fix that is to sell cheaper homes. We shouldn't try to prop up the price of houses. We should considder every home sold, even if it's at a rock bottom price, as taking a homeless person off the streets. I don't care if home prices fall to $100 per home. Let home prices fall. We shouldn't be telling the homebuilders that there is a minimum price they can sell their homes and make it so that it's in their interest to destroy homes.
During the Great Depression. Polititians tried to bail out farmers by putting price controls on the food they grew. Their theory was that to protect the farmers, we needed to plow the crops over so that the farmers could have an adequate wages. Therefore, the government imposed price floors on food and this made farmers plow over their crops even though people were starving. This tragedy, where houses are being demolished has the same cause.
We need to let home prices fall where they may.