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A housing crisis? Location, location, location

Summary:
Housing is expensive here in East Providence. It’s even more expensive in Boston, an hour from here. Some folks live in Rhode Island and commute to Boston. When we were house-hunting in the Providence area in the Spring of ’22, the real estate market was white hot. We were out-bid on three offers. Making an inspection a condition was an automatic reject. In the event, the house we bought never even went on the market.Over at jabberwocking.com, Kevin Drum argues that the “housing crisis” is really a housing crisis in California. He also takes on the argument that the big barrier to building new housing isn’t red tape:“Outside of California, the evidence doesn’t support the idea of either a red tape crisis or a more general housing crisis. The

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Housing is expensive here in East Providence. It’s even more expensive in Boston, an hour from here. Some folks live in Rhode Island and commute to Boston.

When we were house-hunting in the Providence area in the Spring of ’22, the real estate market was white hot. We were out-bid on three offers. Making an inspection a condition was an automatic reject. In the event, the house we bought never even went on the market.

Over at jabberwocking.com, Kevin Drum argues that the “housing crisis” is really a housing crisis in California. He also takes on the argument that the big barrier to building new housing isn’t red tape:

“Outside of California, the evidence doesn’t support the idea of either a red tape crisis or a more general housing crisis. The post-COVID scene did have some weirdness to it that we might not have fully worked through yet, but you shouldn’t get panicky over a couple of years of pandemic weirdness. Nor should you overreact to media accounts of housing in California or the very hottest cities. For 90% of you, the housing market is, at most, a little warmish, nothing more.”

Drum posts graphs to support his argument. This is a bit above my pay grade, and I certainly haven’t surveyed housing markets in towns and medium sized cities.

There isn’t a national housing crisis

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