Reason Foundation

In a column for the Los Angeles Business Journal, Reason's Sam Staley writes, "Limited supply was the biggest factor driving up home prices in California, but many investors were also playing the L.A. real estate game in the same way they'd play the stock market or blackjack tables in Las Vegas. They bet that they could take an interest-only loan, flip the house, and win big. Well, some lost that bet. The government shouldn't be in the business of bailing these gamblers out. After years of skyrocketing housing prices, many first-time homebuyers and middle-class families could actually benefit from this market correction if it brings L.A.'s housing prices back in line with the region's incomes. Then the working families long priced out of the Los Angeles housing market may finally get a shot at owning a home."