It's the demand that would change. If only X people can afford the rent or mortgage for Y homes, raising the value of each Y becomes untenable.
Right now, there is no floor for income. People who can't afford housing simply become homeless. This system functions because there are enough people who earn a high enough wage (X) to pay rent or mortgages (Y). Anyone who can't afford housing is unable to participate in the market, and has no effect on the system.
The first goal of UBI is to set a high enough income floor for every person to afford housing. That would allow the lowest income earners to participate in the housing market.
No matter where the money comes from, the higher UBI is set, the more inflated currency will be. That's the inevitable effect of putting money into circulation. The more inflated currency is, the more is needed by the poorest earners to afford the cheapest housing. The more money that is needed for housing, the more that is given through UBI.
This cycle is specific to low wage earners (UBI recipients), but inflation affects everyone. More inflation means less buying power for average income earners. Less buying power makes housing less affordable.
Everything up to this point sounds like the worst idea ever. Why would you want housing to be less affordable? Because it already is! That problem is here right now, and it's only getting worse. There is no sign that it will ever stop, because there is always room for the real estate market to grow. That room is made of income inequality. The housing crisis only affects poor people. The smaller your wage, the greater portion must be spent on a competitively priced home. The greater income inequality, the higher a competitive price is set!
If we use inflation to move wealth from the middle class (and everyone else) to the poor, then suddenly there won't be enough money in the middle class to pay competitive rent/mortgages. With no one able to pay, housing prices must drop. Once housing costs drop enough that everyone can afford housing, the cycle is complete, and both UBI and inflation growth level out.
The extra benefit is that despite the middle class losing buying power (from inflation), they get to hold onto a greater percentage of their income, because they don't have to spend as much on a hyper-inflated housing market anymore.
Of course, all of this is theoretical, and could be broken through anticompetitive real estate behavior.
Right now, there is no floor for income. People who can't afford housing simply become homeless. This system functions because there are enough people who earn a high enough wage (X) to pay rent or mortgages (Y). Anyone who can't afford housing is unable to participate in the market, and has no effect on the system.
The first goal of UBI is to set a high enough income floor for every person to afford housing. That would allow the lowest income earners to participate in the housing market.
No matter where the money comes from, the higher UBI is set, the more inflated currency will be. That's the inevitable effect of putting money into circulation. The more inflated currency is, the more is needed by the poorest earners to afford the cheapest housing. The more money that is needed for housing, the more that is given through UBI.
This cycle is specific to low wage earners (UBI recipients), but inflation affects everyone. More inflation means less buying power for average income earners. Less buying power makes housing less affordable.
Everything up to this point sounds like the worst idea ever. Why would you want housing to be less affordable? Because it already is! That problem is here right now, and it's only getting worse. There is no sign that it will ever stop, because there is always room for the real estate market to grow. That room is made of income inequality. The housing crisis only affects poor people. The smaller your wage, the greater portion must be spent on a competitively priced home. The greater income inequality, the higher a competitive price is set!
If we use inflation to move wealth from the middle class (and everyone else) to the poor, then suddenly there won't be enough money in the middle class to pay competitive rent/mortgages. With no one able to pay, housing prices must drop. Once housing costs drop enough that everyone can afford housing, the cycle is complete, and both UBI and inflation growth level out.
The extra benefit is that despite the middle class losing buying power (from inflation), they get to hold onto a greater percentage of their income, because they don't have to spend as much on a hyper-inflated housing market anymore.
Of course, all of this is theoretical, and could be broken through anticompetitive real estate behavior.