One more thing on my last post. Someone pointed out to me that Larry Littlefield at Room 8 recently raised the possibility that changing the 421a program might result in a residential real estate glut. But Littlefield thinks it should be an intended consequence. He writes:
Littlefield’s proposal? Extend the program for one year, and then cut it off completely. Then:
I’m not so sure that creating a Houston-style real estate bust is exactly what Bloomberg had in mind when he proposed this, but I guess it’s an idea.
— Andrew Rice