Quote:
Originally Posted by laniroj
TakeFive - You, and some others, consistently make the argument that we have enough land - in fact, you say we have more than enough. If that is true, and assuming all of that land has adequate zoning as your statement implies, then why do we still have a housing crisis? Or do you not think we have a housing crisis?
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How many times do I need to 'splain this?
1) Historically, going back 6 or 7 decades when there has been a recession, whether housing was at the center of it or only mildly affected by the recession, housing construction has led the way out and up. It has always (or predominantly) started with entry-level housing which then led the move-up market and so on.
2) This time, coming out of the Great Recession, builders declined to build entry-level housing. They went with the lower hanging fruit which coming out of
this recession meant upscale and luxury homes. It goes to all the changes that were made with respect to qualifying for a loan.
3) Because of the changes in qualifying for a loan, we became a rental nation. Hopefully you've noticed this.
4) It's only been recently that some builders have pivoted to building a more affordable, entry-level product; more builders are now joining the parade.
See this post as one good example.