Animal Spirits Podcast

Talk Your Book: Why We Don't Build Enough Houses

Jul 6, 2024
Coby Lefkowitz, Partner at Backyard, joins to discuss the complexities of homebuilding, challenges in urban planning and zoning, solutions to the housing crisis, and the role of financial institutions in shaping real estate projects towards scale and cost efficiency.
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INSIGHT

Institutional Home Ownership

  • Institutional single-family home ownership isn't new; it started in the late '80s due to tax and REIT reforms.
  • This increased transparency and liquidity, attracting institutional investors like pensions.
INSIGHT

Blackstone's Impact

  • The narrative of Blackstone buying up all the houses is false; they own a small percentage of the market.
  • Increased institutional investment followed the 2008 recession, not the other way around.
INSIGHT

Local Regulations

  • Housing regulations come from local planning departments, not elected officials, and vary widely by city.
  • These regulations dictate everything from building size to setbacks, adding complexity to development.
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