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It's less that the US has become less wealthy, and more that we have manufactured a housing crisis by refusing to allow people to construct housing to keep up w

by jefftk 5y ago

It's less that the US has become less wealthy, and more that we have manufactured a housing crisis by refusing to allow people to construct housing to keep up with demand.

PhantomGremlin 5y ago
we have manufactured a housing crisis I agree there's a housing crisis, not sure how we arrived at one, "manufactured" or whatever. Just one data point, personal. As a young professional I bought a fairly new house in the Portland Oregon suburbs in the 1980s for about 2x my salary. Today my daughter, a young professional, would have to pay closer to 8x her salary (if you believe Zillow) to buy that very same "starter" house, which is now 35 years older. Rents have commensurately increased. To quote Jimmy McMillan: "the rent is too damn high".
- jefftk 5y ago
  "Manufactured" as in "this is a problem we created through bad policy". It is far harder to build new housing in the US than it used to be, which drives up prices for existing homes, which benefits the local homeowners (voters!) at the expense of everyone else.
- ipaddr 5y ago
  The population of Portland has more than doubled. Interest rates are at 0 and Portland has a popularity increase over 35 years making properties more desirable. Portland is trying not to ruin what made it unique with density everywhere and they are not making new land so all of that equals higher prices. Once interest rates go back to 7% and people start leaving you will see prices go down. Salem or Gresham would be a cheaper city to move to.
  - nly 5y ago
    Interest rates don't matter to first time buyers trying to get on the housing ladder. When housing is 8x income and the bank won't lend you more than 5x income you need to start with a 40% equity to get anywhere
- Lammy 5y ago
  > I agree there's a housing crisis, not sure how we arrived at one, "manufactured" or whatever. https://fred.stlouisfed.org/series/OEHRENWBSHNO https://fred.stlouisfed.org/series/OEHRENWBSHNO
mullingitover 5y ago
I totally agree that we've manufactured a housing crisis, but having driven around in the rural midwest, the US is obviously less wealthy than it used to be. There are abandoned structures littering the country in what used to be thriving towns. We have on average gotten more wealthy, but the p50 and p20 brackets definitely are worse off than in past generations and worse off than in comparable post-industrial economies.

by jefftk 5y ago

It's less that the US has become less wealthy, and more that we have manufactured a housing crisis by refusing to allow people to construct housing to keep up with demand.

PhantomGremlin 5y ago

we have manufactured a housing crisis I agree there's a housing crisis, not sure how we arrived at one, "manufactured" or whatever. Just one data point, personal. As a young professional I bought a fairly new house in the Portland Oregon suburbs in the 1980s for about 2x my salary. Today my daughter, a young professional, would have to pay closer to 8x her salary (if you believe Zillow) to buy that very same "starter" house, which is now 35 years older. Rents have commensurately increased. To quote Jimmy McMillan: "the rent is too damn high".

jefftk 5y ago
"Manufactured" as in "this is a problem we created through bad policy". It is far harder to build new housing in the US than it used to be, which drives up prices for existing homes, which benefits the local homeowners (voters!) at the expense of everyone else.
ipaddr 5y ago
The population of Portland has more than doubled. Interest rates are at 0 and Portland has a popularity increase over 35 years making properties more desirable. Portland is trying not to ruin what made it unique with density everywhere and they are not making new land so all of that equals higher prices. Once interest rates go back to 7% and people start leaving you will see prices go down. Salem or Gresham would be a cheaper city to move to.
- nly 5y ago
  Interest rates don't matter to first time buyers trying to get on the housing ladder. When housing is 8x income and the bank won't lend you more than 5x income you need to start with a 40% equity to get anywhere
Lammy 5y ago
> I agree there's a housing crisis, not sure how we arrived at one, "manufactured" or whatever. https://fred.stlouisfed.org/series/OEHRENWBSHNO https://fred.stlouisfed.org/series/OEHRENWBSHNO

mullingitover 5y ago

I totally agree that we've manufactured a housing crisis, but having driven around in the rural midwest, the US is obviously less wealthy than it used to be. There are abandoned structures littering the country in what used to be thriving towns. We have on average gotten more wealthy, but the p50 and p20 brackets definitely are worse off than in past generations and worse off than in comparable post-industrial economies.