"Upstream" with Erik Torenberg

E51: How We Build More Housing with Brad Hargreaves & Noah Smith

Mar 22, 2024
Discussion on future of real estate, impact of regulations, and potential of new cities with Brad Hargreaves & Noah Smith. Exploring housing challenges, finance, floor area ratio, construction material costs, fire safety, government intervention, and building new cities.
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INSIGHT

Real Estate and the Economy

  • Real estate significantly impacts the economy, especially through finance and debt.
  • The 2008 crisis highlighted the risks of bundled real estate debt and its impact on the broader economy.
INSIGHT

Housing and the Business Cycle

  • Real estate has historically been the largest component of the business cycle, but this has lessened since 2008.
  • The slow recovery of housing construction after 2008 has contributed to the current housing shortage.
INSIGHT

Lending and Regulation

  • Increased regulatory scrutiny on lenders after 2008 makes it harder for small developers to get loans.
  • This regulatory scrutiny contributes to a headwind on housing construction.
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