Tonight's council meeting included a proposal to spend $25,000 for a housing market analysis. After pointing out that we consume the entire take home pay of a median Moorhead family to do it, I questioned the wisdom of meddling in real estate in the first place.
What would be the potential action we would take on these information in the analysis? If the study confirms what we already know, that MN burdens its citizens with high tax and regulatory costs, particularly in relation to our western neighbors, we are limited to two options (one in the same at the core): transfer wealth or change the rules.
A December 28, 2010 Forum article identified that Moorhead has the highest rental prices. Why aren't developers capitalizing on that? While our state's legislature has, for the past several decades, added greater tax and regulatory burdens, for which they deserve scorn, our own city has added to them. The fact that a business had to fight for 11 years to improve its property is a symptom of the underlying problems. Those city controls not only make it harder to do business in Moorhead, the costs fall disproportionately on the poor.
Part of the reason I opposed this measure is my apprehension about what a majority of this council will do that will ultimately make the situation worse. We'll probably shift some tax burden to another segment of our citizens or dream up new rules for otherwise voluntary transactions amongst buyers, sellers and occupants. After eight more years of interference we'll commission another study to see why there are new problems in the market.
Simply put; freedom is the answer. We should empower consumers to once again drive the housing market. Problems in this market, or any other, aren't caused by too much consumer choice but by too much political and bureaucratic meddling - at all levels of government. We should get politicians out of the real estate market and let the consumers spend their money.
The resolution to commission the study passed 7-1.
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