Found 19 article(s) for author 'Housing'

The Macroeconomic Implications of Housing Supply Restrictions

The Macroeconomic Implications of Housing Supply Restrictions. Edward Glaeser, June 15, 2019, Paper, “Housing supply restrictions, including historic preservation policies, minimum lot sizes and height limitations, are typically approached with static Pigouvian tools, but these policies also have dynamic implications. Restricted supply will typically make quantities, which determine construction employment, less volatile, and prices, which determine financial stability, more volatile. A prominent exception occurs when supply-unconstrained areas build so much during a boom that construction halts during the bust, and in that case, elastic supply can be associated with both price volatility and a limited ability to use credit instruments to boost employment during a bust. As institutions with counter-cyclical missions grapple with housing policies, they must recognize that housing regulation interacts with monetary policy, and that reforming housing policy may have implications for the business cycle.Link

Tags: , , , , ,

What Exactly Is Affordable Housing?

What Exactly Is Affordable Housing? Chris Herbert, June 3, 2019, Audio, “Affordable housing: While just two words, the concept isn’t really as simple as it might sound. Despite the complexity of the issue, we so often hear the term “affordable housing” thrown around by everyone from politicians to activists to the press, as if it were a single, monolithic thing. But there are different types of affordable housing, said Chris Herbert, managing director of Harvard’s Joint Center for Housing Studies, leftover from years of housing policies.Link

Tags: , ,

Do the Poor Pay More for Housing? Exploitation, Profit, and Risk in Rental Markets

Do the Poor Pay More for Housing? Exploitation, Profit, and Risk in Rental Markets. Matthew Desmond, 2019, Paper, “This article examines tenant exploitation and landlord profit margins within residential rental markets. Defining exploitation as being overcharged relative to the market value of a property, the authors find exploitation of tenants to be highest in poor neighborhoods. Landlords in poor neighborhoods also extract higher profits from housing units. Property values and tax burdens are considerably lower in depressed residential areas, but rents are not. Because landlords operating in poor communities face more risks, they hedge their position by raising rents on all tenants, carrying the weight of social structure into price. Since losses are rare, landlords typically realize the surplus risk charge as higher profits. Promoting a relational approach to the analysis of inequality, this study demonstrates how the market strategies of landlords contribute to high rent burdens in low-income neighborhoods.Link

Tags: , , ,

Labor shortages and high cost of materials depress homebuilding, industry says

Labor shortages and high cost of materials depress homebuilding, industry says. Chris Herbert, July 18, 2018, Audio, “Data out today from the Department of Commerce gives us our latest indication that the housing market may be slowing. Housing starts, a statistic that charts when construction begins on the foundation of a new building intended primarily for residential use, declined in June from the month before. Residential building permits also dropped last month.Link

 

Tags: , , ,

The State of the Nation’s Housing 2018

The State of the Nation’s Housing 2018. Harvard Joint Center for Housing Studies, June 28, 2018, Paper, “As we mark the 30th anniversary of the State of the Nation’s Housing series, this year’s report presents an opportunity to reflect on how housing market conditions in the United States have evolved over the decades. In addition to our usual look at current trends, the analysis examines how some of today’s conditions echo the past and are a yardstick for the progress we as a nation have and have not made in fulfilling the promise of a decent, affordable home for all.Link

Tags: , , ,

Heavy Is the House: Rent Burden among the American Urban Poor

Heavy Is the House: Rent Burden among the American Urban Poor. Matthew Desmond, January 2018, Paper, “During the past decade, the incomes of poor Americans have fallen or flat-lined, housing costs have soared and public policy has failed to bridge the gap. As a result, the majority of poor renting families in America now devote at least half of their income to covering housing costs, and eviction has become a common yet consequential event in their lives. While housing is central to the lives of the urban poor, it remains marginal to the sociology of American inequality. This essay begins by charting the growing rent burden among low-income households, and then draws on the unique contributions of Pierre Bourdieu to the study of the home to sketch an agenda for analyzing the roots and implications of the loss of affordable urban housing, a prerequisite for offering policy prescriptions.Link

Tags: , , ,

Mortgage-Default Research and the Recent Foreclosure Crisis

Mortgage-Default Research and the Recent Foreclosure Crisis. Christopher Foote, October 2017, Paper, “This paper reviews recent research on mortgage default, focusing on the relationship of this research to the recent foreclosure crisis. Research on defaults was advanced both theoretically and empirically by the time the crisis began, but economists have moved the frontier further by improving data sources, building dynamic optimizing models of default, and explicitly addressing reverse causality between rising foreclosures and falling house prices. Mortgage defaults were also a key component of early research that pointed to subprime and other privately securitized mortgages as fundamental drivers of the housing boom, although this research has been criticized recently. Going forward, improvements to data and models will allow researchers to explore the central unsolved question in this area: why mortgage default is so rare, even for households with high levels of negative equity or financial distress.Link

Tags: , , , , , ,

Reforming land use regulations

Reforming land use regulations. Edward Glaeser, April 22, 2017, Opinion, “Arguably, land use controls have a more widespread impact on the lives of ordinary Americans than any other regulation. These controls, typically imposed by localities, make housing more expensive and restrict the growth of America’s most successful metropolitan areas. These regulations have accreted over time with virtually no cost-benefit analysis. Restricting growth is often locally popular. Promoting affordability is hardly a financially attractive aim for someone who owns a home. Yet the maze of local land use controls imposes costs on outsiders, and on the American economy as a whole.Link

Tags: , , ,

The Economic Implications of Housing Supply

The Economic Implications of Housing Supply. Edward Glaeser, January 4, 2017, Paper, “Housing is both an investment and consumption good. Its production is almost prosaic in its use of simple resources like lumber, yet its financing involves trillions of dollars in mortgages that were central to the recent global financial crisis. As different as a two-by-four may be from a complex collateralized mortgage-back security, the simple fundamentals of housing supply are central to understanding housing markets, the securities that are tied to them, and America’s economic geography.Link

Tags: , ,