The Aaron Renn Show

The Hidden Truths Behind America's Housing Crisis | Adam Ozimek

5 snips
Aug 25, 2025
In a deep dive into America’s housing crisis, Chief Economist Adam Ozimek shares his expertise on the escalating challenges of homebuying in 2025. He explains the key drivers behind soaring prices, from rising construction costs to zoning restrictions and the influence of institutional investors. Ozimek discusses innovative solutions such as YIMBYism, density zoning, and single stairwell reform to tackle affordability. He emphasizes the need for a balanced approach between local control and effective housing policies to create a more accessible market.
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INSIGHT

Dual Drivers Of Today's Housing Crunch

  • Housing affordability reflects both long-run supply shortfalls and a pandemic-era demand shock driven by remote work.
  • Remote work increased demand for separate households and shifted demand to lower-cost metros, raising prices there.
ANECDOTE

Indianapolis Price Surge Example

  • Aaron Renn noted Indianapolis's price-to-income rose from 2.9 to 4.1 over a decade without huge population spikes.
  • He used local examples to question why affordability eroded in non-superstar metros.
INSIGHT

Why Entry-Level Homes Disappeared

  • Construction productivity has stagnated for decades and paired with zoning now blocks entry-level homes.
  • That combination disproportionately removes smaller houses and pushes median prices higher.
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