Innercity real estate values and HUD

Discussion in 'Economics' started by mizer, Dec 31, 2005.

  1. mizer


    I would like to start a discussion about this topic. What would happen to real estate (multi family properties,etc) values if HUD section 8, no longer existed?
  2. nobody knows.
  3. don't worry.
    al-qaeda is always seeking hard assets in this infidel nation.
  4. values would go down because getting your rent payments would be more difficult.

    higher expenses -> lower profitability -> lower asset value
  5. DrChaos


    The purpose there is to try to ensure that the value of keeping property operational is higher than the arson/abandonment value.

    Abandoned properties are roach nets for crime.
  6. Hehe. You've revived youthful, entrepreneurial memories in I cut my teeth on sec 8 redevs some 15 years ago (Harrisburg,PA). What effect would it have on the RE market itself? Nada. The sections of cities where sec 8s are involved are highly blighted (or bordering) areas. The poverish and the city revitalization projects will be the ones affected. I've been out of that game for quite a while now, but I can't imagine HUD not assisting city community projects any more, in a manor similar to sec 8. It was nice, as an ambitious young man, because I could rely on receiving a chunk of the redev costs (sometimes the structure itself~from the city) and part of the rent checks directly from HUD.
  7. maxpi


    Real estate would be up in the long term. Our community got section 8 out, the immediate result was a crime reduction, within a year those properties were all sold to families who went to work on renovations.