Portland Legalized 'Missing Middle' Housing: Now It's Reducing Regulations

reason.com

2 pointsjseliger4 comments

Prices coming down is very bad news for anyone who already owns property in Portland. What if Joe Schmoe has a 1mil mortgage and the value falls to 500k inline with the surrounding cheaper units? Well, Joe looses the house to the bank and then the banks takes a huge loss. Multiply this by thousands and is a recipe for "bringing down the upper class" at everyone's expense.

Demand is too high for the price to fall that low. Plus the city has to get wayy better transportation to the edges of the city limits to really get the inventory they need. Which is multi year+ projects.

Plus Joe can sell at a loss and take his 4k~ monthly expense and locate elsewhere or rent.

How will the decline in property value affect Joe Schmoe's mortgage payments?

I don't understand how this all leads to Mr. Schmoe becoming homeless.

Depends if the state is recourse or not.

If something like this happened in California it would be catastrophic for banks. For Florida? They can just come after the dead beat mortgage holder

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