Plain English with Derek Thompson How the U.S. Housing Market Became Such a Dumpster Fire
4 snips
Nov 1, 2022 
Tracy Alloway and Joe Weisenthal, co-hosts of the Odd Lots podcast, dive into the chaos of the U.S. housing market. They discuss the ripple effects of skyrocketing mortgage rates and the rapid fall of rent prices. The duo reveals how the 2007-2008 financial crisis still haunts builders and buyers alike, while the pandemic has shifted housing demands dramatically. They dissect the tension between the Federal Reserve's policies and soaring home prices, offering insights into the complex dynamics of rental inflation and housing inventory.
AI Snips
Chapters
Transcript
Episode notes
Builder Trauma
- The 2008 housing crash traumatized homebuilders, making them cautious.
- This fear contributed to the housing shortage in the following decade.
Rates Don't Tell the Whole Story
- Mortgage rates alone don't dictate the housing market; behavioral elements play a significant role.
- The Federal Reserve's rate hikes pre-2008 didn't prevent risky lending.
Historic Mortgage Rates
- From the 1970s to 2010, 30-year mortgage rates never dropped below 5%.
- For the next decade, they rarely exceeded it.