Post in To Guy, and all those affordable housing advocates;

Jul 07 05:27 UTC

I don't think we are seeing this issue as clear as we could. The marketplace is
demanding small to medium affordable housing. But there are many issues keeping
the marketplace from responding to the need.

1. Ample credit.(poorly administered)

2. Housing seen as investment versus as a utility.

3. The negative connotation around affordable housing.

Neighborhood associations encourage many of the issues. They are made of up
people who view housing as a middle class 'right' that should increase in value
like stock. They then place incredible barriers to entry such that their values
are protected.

Why?

1. For many their home is all the savings they have.

2. Many have overleveraged their homes and need overall values to increase to
maintain access to cheap credit.

3. No one wants someone else to get a better deal than they did.

Ok so how do they do it?

1. They will make builders include features that protect their values.
(basements, garages)

2. They express that families need room. (read cost high enough to limit the
type of families that are encouraged to come)

3. The housing must match existing stock. By default this creates a set
marketplace.

Look there are only so many upper middleclass 2 parent households with 2 kids.
As a matter of fact, this type of family is as sought after as the other
species referred to as the mass affluent.

So what can we do?

1. Take the power away from the neighborhood associations. Focus on building
housing that people can truly afford.

2. Encourage builders that cheap doesn't mean low quality. Set clear simple
guidelines.

3. Minneapolis should do an Xprize competition that encourages builders and
architechs globally to compete to build homes for under $40k. Provide access to
a lucrative building site.

Look this problem is not easy to fix, but we need to ensure that everyone has
access to housing. Housing is not an option. It's a right.