tag:blogger.com,1999:blog-1110014885778996459.post7938174701301320072..comments2024-03-28T04:16:11.729-07:00Comments on Idiosyncratic Whisk: Housing: Part 156 - Credit Access and Economic InequalityKevin Erdmannhttp://www.blogger.com/profile/07431566729667544886noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-1110014885778996459.post-45085288215920944992016-06-06T18:00:53.977-07:002016-06-06T18:00:53.977-07:00That's my impression too, which make Tyler ...That's my impression too, which make Tyler ' s acceptance of the idea that more houses could increase prices a bit frustrating. But he's supporting the development of the other side of the story, so it's probably not fair of me to be frustrated. His open mindedness is his strength. A feature not a bug.Kevin Erdmannhttps://www.blogger.com/profile/07431566729667544886noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-86893998002123565652016-06-06T17:33:47.617-07:002016-06-06T17:33:47.617-07:00Unfortunately I think zoning is addictive and only...Unfortunately I think zoning is addictive and only gets worse. I cannot think of a city that has gone to lighter zoning.Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-64445099031919866642016-06-06T13:01:13.005-07:002016-06-06T13:01:13.005-07:00Yeah. It seems like Tyler's being a little to...Yeah. It seems like Tyler's being a little too open minded on that. Is there an actual example of a closed access city switching to pro-housing and failing to bring down prices?<br /><br />Kevin Erdmannhttps://www.blogger.com/profile/07431566729667544886noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-88630554619248590582016-06-05T21:53:39.318-07:002016-06-05T21:53:39.318-07:00In liquid housing markets, homeownership might wor...In liquid housing markets, homeownership might work even in large capitalist national labor markets, as homeowners would know if they want to move to a new city they can easily sell. <br /><br />My guess is that with no zoning, easier building codes and no home mortgage interest tax deduction, we would see lower levels of homeownership, as housing became an ever-cheaper low-cost commodity. Builders would continuously improve designs and techniques. Maybe steel containers. <br /><br />BTW, Tyler Cowen recently posted on London house prices, and I thought it was one if his weakest responses. Instead of (as a libertarian) calling for dezoning, he said ain't much that can done, and doing something would lover house prices, hurting homeowners. <br /><br />Maybe he was acknowledging the political realities. But the American right-wing is hopeless when it comes to property zoning. They are for it, or mute. <br /><br />Ridiculing San Francisco or Manhattan is allowed. But not Newport Beach or home acreage minimums in Connecticut. Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-23059445630072365762016-06-04T21:30:52.966-07:002016-06-04T21:30:52.966-07:00Thanks Benjamin.
Actually, I think we might all h...Thanks Benjamin.<br /><br />Actually, I think we might all have been wrong about that too.<br /><br />Here is an article and paper:<br />http://www.lindau-nobel.org/us-homeowners-stay-unemployed-for-longer/<br />http://www.city.ac.uk/__data/assets/pdf_file/0016/201706/13_04_Firat.pdf<br /><br />They find the usual finding that homeowners take longer to re-enter the labor force. But, what's interesting is that they find that owners with a mortgage are more similar to renters. It is the free and clear owners who have different labor force behavior in contractions.<br />I think what this means is that the slower labor force reaction from homeowners isn't due to the stress of sitting on undervalued property. It's due to the benefit of a safety net of not having a monthly housing expense. I think they are less mobile by choice. This is a good thing.<br />I don't really have an opinion one way or the other regarding ownership. I think we should facilitate it but not encourage it. But, I'm not sure this is a big a problem as most economists have been assuming it is.Kevin Erdmannhttps://www.blogger.com/profile/07431566729667544886noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-59696019243354433352016-06-04T18:07:05.043-07:002016-06-04T18:07:05.043-07:00Fascinating post.
Absolutely, finance home purch...Fascinating post. <br /><br />Absolutely, finance home purchasing and unzone and dereg so there is lots of housing. Steel container housing is an interesting idea.<br /><br />I do wonder about home ownership in an era of two- income families searching for work, which may require relocation.<br /><br />For the purposes of a national capitalistic labor market, would a nation of renters actually be better?Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com