Risk of Ruin Let Them Eat Cake
18 snips
Dec 8, 2025 Kevin Erdmann, a housing economist at the Mercatus Center, and Ben Baer, CEO of BuildCasa, delve into the surprising shift from the 2008 financial crash to today's housing shortages. They discuss how post-crash regulations transformed the lending landscape, leading to a rental market boom. Erdmann shares insights on migration-induced demand bubbles and the intricacies of zoning laws as barriers to housing development. Baer reveals innovative strategies for leveraging small-lot developments in California and the challenges posed by recent legislation.
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Regulatory Change Creates Short-Term Edges
- New laws and procedural changes are creating real shifts in what projects can be approved.
- These legal shifts create short-term edges for builders who understand them early.
Town Meeting Theater Over A 70-Unit Project
- John attended weeks of city meetings where neighbors fiercely opposed a 70-unit townhome project.
- The council narrowly approved it, citing the Housing Accountability Act and litigation risk.
Post-Crisis Credit Tightening Killed Supply
- The 2007–2008 bust wasn't simply caused by overbuilding or unqualified borrowers.
- Credit tightening after the crisis suppressed supply for years and reshaped housing markets.
