by Summary:
This week we have Douglas Dowell back for a second time to talk about the housing crisis seen across most developed nations. Good Links: https://www.patreon.com/c/ProfSteveKeen/home https://www.patreon.com/c/relearningeconomics https://businessfilmbooth.com/ https://www.planksip.org/ https://efequitygrp.com/
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This week we have Douglas Dowell back for a second time to talk about the housing crisis seen across most developed nations. Good Links: https://www.patreon.com/c/ProfSteveKeen/home https://www.patreon.com/c/relearningeconomics https://businessfilmbooth.com/ https://www.planksip.org/ https://efequitygrp.com/
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Steve Keen considers the following as important:
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New Economics Foundation writes Is the Labour government delivering on its promises?
John Quiggin writes Dispensing with the US-centric financial system
New Economics Foundation writes Whose growth is it anyway?
Matias Vernengo writes What is heterodox economics?
| This week we have Douglas Dowell back for a second time to talk about the housing crisis seen across most developed nations. Good Links: https://www.patreon.com/c/ProfSteveKeen/home https://www.patreon.com/c/relearningeconomics https://businessfilmbooth.com/ https://www.planksip.org/ https://efequitygrp.com/ |
Re sortition, the Hannah Arendt Center of Bard College has worked to make this approach known.
Steve is right, i dont care if boomers lose their shirts.
On the supply issue Cameron Murray is the best. Developers are only about making money. Affordable housing is just a marketing term. Public housing is important.
The CEO's don't trust their employees to work from home, as they wouldn't trust themselves …
I have a dream of living in a small mud hut surrounded by a permaculture garden, but my government wont let me.
We really need to grow people with bigger brains so they can learn critical thinking skills, eh?
The baby boomers have been subsidized their entire working lives….
Reagan and thatcher guaranteed that
It’s libtards vs trump-tards
So climate change started these fires and not power lines, blow torches, and homeless meth heads?
35:45 Wait, there's a limited amount of wood to build houses?! Too bad it can't grow it on trees….
Supply has gone ballistic in UK and in Scotland, also Ireland, meaning property prices will be retreating soon.
Everyone knows working remotely is only for CEO’s….
It's not possible to lend money based upon rent. Only about 50% of housing have some kind of rental estimate. The next 25% are over 25% off. The remainder have no estimate. I think that we should be lending 3 times the main income earner, over 20 years. And no first home vendor grants. Investors need to have a greater deposit based upon the number of homes they have.
Ne Orleans is arguably the first U.S. city to be wiped out by Climate Change and was wiped out more thoroughly.
PILL makes sense. The problem is that a lot of the time, borrowers are allowed to list imaginary rental income as real income. So they prefer to leave a property empty, saying they're waiting for a tenant who will pay sky-high rent that the market doesn't actually bear. And the lender is happy to treat this as though it were the actual rental income for the property. The laws should require the rental income to update every year or to the current rent being paid, or else to the previous year's amount times a decay coefficient (eg 0.9). That should give enough of a nudge to keep landlords hungry for a tenant, and keep those income levels honest.
Most government statistical agencies have a time series of imputed rents which can be applied at the lowest census level. There are no regions outside of deserts with zero rents.
@@ProfSteveKeen The issue I'm referring to is where the imputed rent is too high — above the level where any renter is actually willing to rent it. So the property valuation is higher on paper than in reality. The property sits empty, even for years at a time, waiting for a tenant who will someday pay the imputed rent. This is especially an issue in commercial real estate, leading to empty storefronts at anchor locations, hollowing out neighbourhoods. It's possible that government statistics can (and do?) correct for this, but it seems that lenders are all too willing to entertain the fantasy.
@@jbay088 Yes that's an issue. Statisticians are aware of it, but normally in a bubble market the rental based valuation is way below the sale price valuation.
In Building the house, building the house (the "box") is the fastest stage, most time is spent in electricity, ventilation, heat, water, sewage, decorating and foundations. All of that is going to be hard to replace by 3d printing as long as buildings are built on site.
annoyed by the right wing nutcase 15 minute city remark. in my city Utrecht in the Netherlands only electric worker vans are allowed, which in effect means big companies get another advantage over small companies who can not adapt so easily. The save the world adagium by the political elite has also a big impact on the housing crisis, because the lack of supply is for a big part due to a so called nitrogen models that are delusional and far from honest. all these measures have one thing in common, an increase in disparity between the have nots and the haves. And when I look around me the impact is huge, inflation, young people living at their parents house up to their thirties because a house (rent and buy) in getting increasingly unreachable.
This Podcast has the most banger intro in the world.
Here in Switzerland it's not even a secret that the entire housing market is based on debt-fueled speculation.
Interest rates are rock bottom (near or below zero since 2009), people can use their retirement accounts to fund the down payment (eliminating opportunity cost) and the best part of all, you don't even have to pay off your mortgage! You can stay in debt at 65% leverage for the rest of your life. Not surprisingly, the median home is >10x the median income, and private household debt is sitting at 125% of GDP around here.
Ty is actually wrong about suburban sprawl and housing. He needs to learn about agriculture. If you look at history of population movement we have left the rural communities to go to urban centres. We have consolidated farmland into giant corporate farms. What we need is small farms integrated with housing with the transportation infrastructure. This actually produces more food and is better for the environment. It takes some time to explain. But he could have a nice house and enjoy a beautiful garden and countryside too.
He’s also not aware of the effects of the industrial agriculture for export system on trees. Go outside of the city. As far as you can see that used to be trees. Now it’s corn and soybeans grown to feed hogs for export to Asia and the US and Mexico. We could easily grow more trees as some US states do and certainly some European countries. It’s our agricultural system and our subsidies and trade agreements, tax system.
Cities have grown to their limits and are now growing up which increases costs. Go just outside the city and you see full till empty fields from horizon to horizon. Every house and tree gone. This is an environmental disaster. Farms are not necessarily good for the environment, they can be much worse than houses.