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The only solution to the housing affordability crisis palatable to current homeowners is to build many new homes of a totally different type that can not be rea
by voisin 2y ago
The only solution to the housing affordability crisis palatable to current homeowners is to build many new homes of a totally different type that can not be readily substituted. This is already happening where new housing tends to be denser, stacked (apartments) or closer together (row houses). Of course there is some overlap, but to the extent overlap and substitutability can be minimized, current homeowners can enjoy their high values that many have relied upon for retirement plans, and prospective homeowners can enjoy plentiful inexpensive housing to “get into the market”, which would help keep rent costs lower too (much more substitutability between small starter homes/condos and rentals).
Just my 2 cents. If we are reliant on Boomers giving up their house values (which many foolishly rely wholly on for retirement) then there’s zero chance we tackle this crisis.
- happytoexplain 2y ago>homes of a totally different type that can not be readily substituted Can you explain what this means? What does "substituted" mean in this context?
- voisin 2y agoPeople generally wont substitute a single family home on a large lot for a condo on the 16th floor of a building. So if you build a lot of condos and stacked townhomes, etc, then it wouldn’t necessarily affect the price of single family homes on large lots. So young people can get into the housing market without affecting boomer retirement plans (their houses).
- s1artibartfast 2y agoThe kind of person who wants a 3000sqft suburban home is in a different market than someone that needs to keep the rain off their head and shower before work. Building dense urban dwellings, especially cheap ones, shouldn't impact the price for better housing much. This is the same reason the availability of paddle boats doesn't impact the price of megayachts.