Kevin Erdmann - Why Are We Afraid Of Building Homes?
Jun 12, 2024
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Kevin Erdmann discusses the impact of zoning, the 2008 economic crisis, and housing preferences on today's housing market. Topics include challenges in building homes post-2008 recession, revisiting housing crisis narratives, analyzing the policy impact, class dynamics in home ownership, underwriting practices, housing market dynamics, and overcoming fear of building homes.
The 2008 recession highlighted supply constraints and policy decisions as key factors in the housing crisis, shifting the narrative away from excessive demand.
Zoning laws and restrictions on multifamily units have shaped urban development regulations, impacting housing diversity and affordability challenges.
Societal perceptions hinder necessary housing policy changes, leading to housing shortages, higher rents, and limited affordability.
Deep dives
Impact of the 2008 Recession on Housing Policies
The podcast delves into the significance of the 2008 recession in shaping housing policies, particularly focusing on the aftermath and consequences for city development. It emphasizes the 100 years of historical context leading up to the recession, highlighting the complexities surrounding urban planning, zoning, and municipal legal structures. The discussion underscores how the recession exposed long-standing issues in city building, making it legally challenging to revert to prior city development practices, leading to a constrained housing market following 2008.
Contrasting Conventional Wisdom with Policy Realities
The episode challenges the conventional wisdom regarding the 2008 housing boom, offering a nuanced perspective on the factors driving the crisis. It critiques the common narrative of excessive demand and reckless lending, arguing that supply constraints and policy decisions played a more substantial role. The conversation highlights the regressive rent cost inflation caused by supply limitations and the misinterpretation of credit effects on price appreciation, shedding light on the misjudgments surrounding the crisis and its aftermath.
The Evolution of City Building and Housing Policies
Exploring the evolution of city building and housing policies, the podcast discusses the shift in urban development regulations and public perceptions over time. It delves into the zoning laws' impact on housing diversity and the challenges arising from restrictions on multifamily units. The conversation unpacks the tension between managing urban growth and preserving neighborhood character, illustrating how historical decisions have shaped modern affordability issues and the need for reevaluating housing policies to address current housing challenges.
Expectations of Urban Centers
Many people, particularly from suburban areas, expect downtown cores to resemble entertainment parks like Universal Studios, offering a structured experience with predefined activities and amenities. This expectation of a regimented urban space contrasts with the essence of a bustling, diverse city where various elements are clustered together. The speaker highlights the need to redefine the perception of cities, embracing the vibrancy, diversity, and authentic urban experience that comes with crowded streets and mixed land uses.
Housing Market Challenges and Collective Action
The housing market dynamics pose challenges rooted in a collective action dilemma, where neighborhoods resist change out of fear of negative externalities like crime, reduced property values, and shifts in socioeconomic demographics. Restrictive zoning policies contribute to housing shortages, pushing rents higher and limiting affordability. The reluctance to embrace necessary changes in housing policies stems from societal perceptions and a reluctance to make impactful adjustments. Overcoming these challenges requires a shift towards more inclusive and proactive housing development strategies to address affordability and neighborhood dynamics efficiently.
Alex speaks with Kevin Erdmann about how zoning, the 2008 economic crisis, and the desire to live away from "those people" is effecting the state of housing today.