Housing

A healthy economy will have various levels of entry into particular markets due to a large supply of product and the ability to manufacture or refine said product at different levels according to function, quality and features. Think of food for example. We have farmers markets and charity food banks then smaller independent or discount grocers up to large supermarkets and specialty stores. Restaurants go from street vendors and food trucks to small eateries, diners and cafes then fast food, casual dining to more formal dining based on all types of themes and cuisines either foreign or domestic inspired. Though the market for cars has been more stressed of late, it has been based on a line of several manufacturers -foreign and domestic - that provide a wide range of vehicles for various terrains and applications with differing levels of features. Both private citizens and dealers sell used cars of various age, mileage and condition. Junkyards and a remanufacturing aftermarket provide choice in auto parts to facilitate maintenance. Similar choice options can be said about clothing and department stores going from thrift and charity shops, flea markets, pawn shops, boutiques, mom-and-pops then independents to regional chains all the way to big-box retailers. There are also online options from which one can order.

Consider now the flexibilities of the housing market. The base structures are houses, apartments, condos and townhomes. Broad categories come under single family and multifamily. There are previously occupied structures that enter the market and there is some new construction. Despite all these possibilities, this already large expense has been increasing and is straining more and more of the populace. Housing takes up a greater and greater share of one's budget. General inflation, higher gas and food costs exacerbate the situation not to mention higher interest rates. Homelessness is becoming more of a problem.

Why is all this occurring? Higher interest rates translate to higher mortgages which not only makes homes less affordable to new homebuyers but discourages others from putting their homes on the market because they want to avoid losing their lower rate mortgage at their current property that would be exchanged for a higher mortgage obtained today over their next property. This in turn retards the graduation rate from rentals to home ownership thus stressing the supply of rentals. On top of that, the rising cost of building materials and higher cost of capital makes the construction of new properties more costly.

The solution to all this would be to increase the supply of housing while providing differing types of dwellings and new construction methods which would allow for entry into different levels of the housing market according to need. However, people are noticing that the marketplace is geared to more habitual types of housing entering the market which is luxury apartments and condos or single family homes which may conform more to the mass cookie-cutter construction practices or layouts with no better yield in affordability.

The current housing inflexibility is so egregious, one has to ask who is responsible and what needs to change? We can attribute some of the outcome to federal policy or Federal Reserve practice but looking to the federal government to provide solutions to begin with is foolhardy. Federal government assistance and intervention has not worked in other areas such as health care or retirement where health care is still expensive and paltry Social Security is heading towards insolvency not to mention the federal government is approaching bankruptcy itself. And what have your state and local governments done? Have they provided sufficient low-income housing that is accessible and of high quality? Has your local government broke ground on some new token property to provide affordable housing? Chances are it is more of the same -- limited quantity and not so much lower in current housing costs or subsidized while likely being more rentals. Are they as adept as Habitat for Humanity or do they put up lots of red tape and impede the process? How much of the earmarked dollars for government housing is lost to inefficiency or outright corruption? Housing markets do vary from locale to locale so perhaps your community fares better.

The real estate market has been subject to federal and state legislation to rein it in towards more transparent, fair and ethical practice. With this history in mind and the lack of solution for housing, it may be reasonable to wonder if there are any industry interests lobbying to keep things going as they are perhaps to cater to the real or imagined concerns of NIMBYism or for benefit of those who will better profit under the current status quo. We ask because some private and public forces seem content to keep the current structure which limits the availability of contractors to provide new types of housing via new construction methods or provide smaller and more affordable homes to meet housing needs. There has been great need and outcry but where does the official response lay in terms of facilitating new and quicker housing solutions? Funny that the federal government owns an inordinate amount of land in the western states while local regulations don't seem very accomodating to new approaches. Illegal migrants get free hotel rooms though.

Counties and municipalities need to start zoning more land according to different tiers of housing solution. Some land should be used for more campground-like and small cabin settings to yield housing for poverty-level folks and even some half-way properties for ex-cons under appropriate security. Then there should be zoning for those who can attain tiny homes, yurts, container homes and other alternative structures. The next market level should be geared towards modular, manufactured and other factory-produced dwellings. Another zoning level should facilitate for more traditional construction methods but at lower square footage per unit. Dormitory-like housing and more basic apartments would occupy this tier as well. Also loosen regulation concerning the addition of accessory dwelling units (ADUs) to already existing properties. Regarding concern about necessary infrastructure to support certain zoning levels, alternate utilization methods like diverting rain water runoff, cisterns, tapping of hand-pump wells, atmospheric water generators and disposal options using campground-communal bathrooms, unit grey water systems and humanure composting can make new zoning communities more feasible.

There is a multi-level marketable solution to the housing problem with reasonable building codes for various approaches. The question is why have your community leaders merely given lip service without any appreciable follow-up in addressing this problem and why have you all tolerated this inaction for so long?

Causation

'While there are many drivers of modern-day homelessness, it is largely the result of failed policies; severely underfunded programs that have led to affordable housing shortages; wages that do not keep up with rising rents and housing costs; inadequate safety nets; inequitable access to quality health care (including mental health care), education, and economic opportunity; and mass incarceration. In effect, more than half of Americans live paycheck to paycheck and one crisis away from homelessness.'

'Homelessness in the United States is an urgent public health issue and humanitarian crisis. It impacts cities, suburbs, and rural towns in every state. Housing is a social determinant of health, meaning lack of it has a negative impact on overall health and life expectancy. Tens of thousands of people die every year due to the dangerous conditions of living without housing—conditions that have worsened due to climate change’s rise in extreme weather. People who experience homelessness die nearly 30 years earlier than the average American—and often from easily treatable illnesses.'

'Homelessness usually happens because of economic reasons (such as job loss), and many people have nowhere else to go but outside. Many shelters are full or limited to people who are sober, straight, free of disability or criminal history, and/or willing to separate from their children, partners, or pets. These discriminatory policies leave parents, couples, pet owners, LGBTQI+ members, and people with addictions, disabilities, or criminal records on the streets, where they live in constant fear of hunger, violence, storms, and infectious disease. “Out of sight, out of mind” laws that make it illegal to sit or sleep in public outdoor spaces only exacerbate the revolving door between homelessness and incarceration, and they do not solve homelessness. Housing and supports solve homelessness—not handcuffs.'

'Decades of research prove how effective and cost-effective Housing First can be. Studies show that 9 out of 10 people remain housed a year after receiving Housing First assistance, and that housing can be three times cheaper than criminalization. According to a recent study, Housing First pays for itself within 1.5 years and can reduce homelessness and government reliance—all while getting people back to work.'

'Low home inventory is a chronic problem in the US. This has generally kept home prices up, even as mortgage rates peaked near 8% and homebuying demand plummeted last year. Demand may increase if rates go down in the second half of 2024, so even if home prices were to drop in 2024, they likely wouldn't fall enough to significantly improve affordability on their own.'

'If demand were to plummet, home prices could start falling. A severe recession could cause this to happen, for example. But even with a recession, it's not a given that the housing market would crash as a result.'

'Finding a home in your price range may become even trickier, and you may need to make a lot of offers on homes before you get one accepted.' ~ Molly Grace; edited by Laura Grace Tarpley | Updated Jun 3, 2024, 3:50 PM EDT

'By 2013, the average sales price of homes sold in the U.S. had rebounded to pre-crisis levels. For the next several years, the uptrend looked promising, until 2018 when prices flattened, and then began to fall slightly in 2019. Prices saw a dip in 2020 but housing prices have been climbing drastically since then and leveling off around 2022 with dips and climbs through 2024.'

'Home prices since 2020 have increased at unprecedented rates as the economy reemerged from the downturn of 2020. Record low mortgage rates and a shortage of homes for sale were the primary drivers of this phenomenon.'

'The average 30-year fixed-rate mortgage rate had been below 5% since 2010 (keep in mind that even tiny changes in rates can have a huge impact on the overall cost of your home) until the Fed started aggressively increasing rates in 2022 to fight inflation.'

'As of Nov. 2023 (latest information), the average price of a home in the U.S. is $488,900. Prices have been increasing since 2011 but often have been choppy given the economic environment.' ~ By JEAN FOLGER | Updated January 08, 2024

'Housing isn’t only out of reach for minimum wage earners. The 2022 housing wage is far higher than the median hourly rate earned by customer service workers ($17.75), nursing assistants ($14.57), maintenance and repair workers ($20.76), home health aides ($14.15), retail workers ($14.03), and many others in the workforce.'

'Additionally, most states have not replaced the old welfare system with an alternative that enables families and individuals to obtain above-poverty employment and to sustain themselves when work is not available or possible.'

'The causes of homelessness reflect an intricate interplay between structural factors, systems failures and individual circumstances. Homelessness is usually the result of the cumulative impact of a number of factors, rather than a single cause.'

'Shifts in the economy both nationally and locally can create challenges for people to earn an adequate income and pay for food and housing.'

'Poverty can mean a person is one illness, one accident or one paycheque away from living on the streets.'

'A critical shortage of housing that is affordable, safe and stable directly contributes to homelessness. The millions of Canadian families and individuals living in "core need" (spending more than 50% of their income on housing) are at serious risk of homelessness, as are families and individuals spending more than 30% of their income on housing.'

'Individual and relational factors apply to the personal circumstances of a person experiencing homelessness, and may include: traumatic events (e.g., house fire or job loss), personal crisis (e.g., family break-up or domestic violence), mental health and addictions challenges (including brain injury and fetal alcohol syndrome), which can be both a cause and consequence of homelessness, and physical health problems or disabilities. Relational problems can include family violence and abuse, addictions and mental health problems of other family members and extreme poverty.' ~ Stephen Gaetz, Erin Dej, Tim Richter, & Melanie Redman | 2016

'There are thousands of people in Wake County who are one paycheck, one illness, or one job loss away from being situationally homeless. While each situation is different, there are a couple of common underlying causes: Adverse Childhood Experiences (ACEs) and reading proficiency.'

'ACEs are serious childhood traumas that result in toxic stress that harms a child’s brain development and affects overall physical, mental, and emotional health. The stress can prevent a child from learning, building healthy, trusting relationships, and can result in long-term health problems like high blood pressure.'

'Many of the individuals experiencing homelessness, including those who come to Raleigh Rescue Mission, have been subjected to more than five ACEs or traumas as adults.'

'There is conclusive evidence that reading proficiency is a direct predictor of future success. Children who are strong readers by fourth grade are more likely to graduate from high school and pursue college or vocational training.'

'Adults who don’t graduate from high school are more likely to be arrested or incarcerated, as well as more likely to struggle financially and face poverty and chronic stress. All of these situations increase the likelihood of homelessness.'

'Manufactured homes have historically been considered a solution to affordable housing shortages, but ballooning rent and financing costs are creating new barriers.'

'By January 2022, the average sales price rose to $122,500, influenced by demand, inflation and labor shortages, according to the Urban Institute. That’s compared to the $108,000 manufactured homes went for on average in 2021, according to US Census Bureau data.'

'Zoning restrictions, rent increases and financing challenges are stymying manufactured home production, Goodman said. Additionally, many municipalities don’t allow or make it difficult to build new communities and parks.'

'Although the credit standards for home-only financing are more achievable, it’s often a more expensive option since the homeowner also has to pay rent on the land.'

'That land, often manufactured home communities or parks, is appealing to investors who may have short-term interests that don’t include long-term affordability for homeowners.' ~ Katie Smith | Updated: FEB 8, 2024 03:48 PM CST

'The answer is filtering. As a building ages, it often becomes more affordable. The aesthetics are a bit dated; the place needs maintenance; the neighborhood that was once up and coming is now less so. Thus, older housing tends to “filter” down to a lower income bracket: the rich are buying the new stuff.'

'Most of us live in housing that has filtered. Only a small fraction of all the buildings in your city were likely constructed this year, or even this decade. It is unrealistic to expect new construction to solve our affordable housing problems, when new construction comprises a tiny share of the homes that exist.'

'By limiting what can be built where, zoning and other land-use regulations may well restrict the total number of new homes in a given neighborhood, city, or even region to far fewer than the market would otherwise provide. Rick Jacobus, in this fantastic 2017 piece at Shelterforce, explains how this leads to the “luxury only” phenomenon by comparing developers to car manufacturers:'

'This is why the proposal in Minneapolis's draft comprehensive plan to allow duplexes, triplexes, and fourplexes throughout residential neighborhoods is such a promising idea. Single-family homes in the city's toniest neighborhoods—particularly around the Chain of Lakes in its southwest corner—are already being torn down to build larger single-family homes. What if some of those were instead torn down to build triplexes or fourplexes?'

'New development could be even cheaper if its costs were restricted to land and construction alone. But all sorts of other factors drive up the cost of development—and some of them are the result of well-meaning local regulations.'

'Another hidden cost of development can be the time delays involved in local government review processes. These delays, and the attendant uncertainty, impose very real monetary costs on developers, who have to control their land (and thus pay property taxes on it, as well as interest on any loans used to finance its purchase) while their proposed projects make their way through the approval pipeline.'

'Missing Middle housing—buildings containing anywhere from 2 to 19 units—can be a sweet spot when it comes to construction cost. Duplexes through fourplexes in particular are built in much the same way as single-family homes, but the cost of the land is distributed across multiple households. Even cheaper to build than a duplex or fourplex is an accessory dwelling unit (ADU).'

'The luxury-only problem is to a large extent a function of the fact that we have eliminated incremental change from most corners of our cities. Neighborhoods composed of single-family houses are declared almost entirely off-limits to development. In the remaining areas, we thus make sure that intense pent-up market demand is concentrated like a fire hose, and that development is undertaken primarily at large scales (giant apartment complexes) and in needlessly expensive ways.'

'No wonder “they only build luxury housing.” We've made it pretty hard to afford to do anything else.' ~ Daniel Herriges | July 30, 2018

Bureaucracy Failures

'The United States Interagency Council on Homelessness (USICH) is the only agency at the federal level with the sole responsibility of ending homelessness. It works across 19 federal agencies and departments, and with partners in both the public and private sectors, to improve federal spending outcomes for homelessness.'

'Reducing Bureaucracy: USICH cuts through federal bureaucracy and competing priorities to improve outcomes for homeless people:'

'Several federal agencies have programs serving those experiencing or at risk of homelessness. However, these agencies could improve how they implement these programs.'

'HUD and FEMA don't regularly work together on homeless housing issues during disasters and should do so to more efficiently and effectively assist this population.'

'HUD should provide communities more information about how best to use such data to improve point-in-time counts moving forward.'

'HUD and the Department of Health and Human Services (HHS) provide grants to local organizations to operate youth homelessness programs, like shelters or transitional living programs. However, some youth who are homeless may not be receiving services for which they are eligible. HUD and HHS should provide more guidance to local programs on how to help these youth access such services.'

'The U.S. Interagency Council on Homelessness coordinates the federal response to homelessness. The Council has developed a strategic plan and benchmarks for ending veteran homelessness and chronic homelessness. However, the Council could better clarify its roles and responsibilities and establish written policies and procedures for meeting statutory requirements.'

'Five of the largest nonprofit homeless service providers in Los Angeles County told the Board of Supervisors on Tuesday, May 21, they are fighting a bureaucracy that has forced them to cut services, mostly due to inadequate reimbursements that don’t cover their costs and often arrive up to four months late.'

'A broken payment system partially funded by $355 million annually from the homeless tax, Measure H, which passed countywide in 2017, has been unable to timely pay the service providers who do street outreach, put people in interim and permanent housing, and pay rents that prevent thousands from landing back on the streets.'

'One small business owner whose business provides services through HOPICS was in tears after being told he would not be paid that month and as a result, his employees working with the homeless would also not get a paycheck, Lewis told the board.'

'A second issue outlined by providers is low-balling. Reimbursements have not increased since 2017. John Maceri, CEO of The People Concern, explained that a $1.2 million contract only gets reimbursed for $1 million, leaving the rest to be covered by the provider.'

“Some internal systems at LAHSA have definitely contributed to delays,” Adams Kellum said. “I do think it is time for a change.” A letter from L.A. Mayor Karen Bass acknowledged that bureaucracy within the system is an impediment to timely payments.'

'The supervisors voted to receive a written report from their Homeless Initiative Department in four months to figure out how to replace the reimbursement payment model and prevent delays in the funds awaiting the homeless providers. The board will hear a verbal progress report at its June 18 board meeting.' ~ STEVE SCAUZILLO | PUBLISHED: May 21, 2024 at 4:55 p.m. :: UPDATED: May 22, 2024 at 9:07 a.m.

'John's situation is hardly unique. An NYU Silver School of Social Work research team found that found that bureaucratic barriers rather than personal intransigence lead many street homeless people in New York City to refuse outreach workers' offers of shelter. Deborah Padgett, who led the study and co-authored the book "Housing First: Ending Homelessness, Changing Systems and Transforming Lives," noted that the process of gaining access to permanent housing is lengthy and confusing.'

'Jeffrey noted that the importance of paperwork and following the process was stressed during the workshop. He said that when followed correctly, being prepared and making a quality move can eliminate frequent moves, provide stability and bring positive and beneficial changes to the individual and families.' | JULY 24, 2019

'But what can cities actually do to address homelessness? Local governments face major limitations to addressing homelessness that federal and state government do not, due to budget or administrative capacity constraints. This blog post explores some of the key actions local government can and should pursue; readers should keep in mind that these are very broad suggestions and should vary depending on the size of the jurisdiction and the respective roles of overlapping jurisdictions.'

'Today’s nationwide housing crisis is the result of decades of disinvestment and policy choices by both federal and state governments.'

'The most valuable resource that local government does have access to is land. Local governments may not be able to fully fund all aspects of developing affordable or supportive housing, but can make publicly-owned land available to affordable developers, solving the vexing question of how to site affordable housing and significantly lower development costs.'

'Similarly, local governments control land use and zoning regulations. As a result, City Councils, County Boards, and others can be major barriers to the delivery of needed housing, or they can facilitate its expedited delivery and ensure that developments targeting those with the greatest needs are prioritized.'

'While cities grapple with rising numbers of people experiencing unsheltered homelessness, they can also ensure that street conditions are healthier for encampment residents and their neighbors alike. Ensuring equitable access to public restrooms, garbage pickup, and other hygiene infrastructure like wash stations is a critical step local governments can take to improve conditions for all of their residents.'

'Local governments should consult with service providers and people with lived experience of homelessness to look at municipal codes and determine how existing ordinances make it more difficult to serve people experiencing homelessness.'

'As noted above, local governments can play a role in facilitating the creation of affordable housing solutions. Similarly, cities can also enact a host of zoning and land use policies that restrict affordable housing. Cities should examine their existing housing and land use policies to determine if such policies exist and remove them.' ~ Alex Visotzky | January 24, 2023

'Poole is one of the 10 Glynn County natives selected to be the first people to move into the tiny home community on Altamaha Avenue in Brunswick. Yet despite four years of planning and $4 million in private donations spent on construction, the group’s 60 fully furnished homes remain vacant, an unfortunate illustration of how bureaucratic red tape can frustrate even the most determined advocates trying to solve the problem of homelessness in Glynn County.'

'The vision to build a community that meets all the needs of the working poor and elderly meant building a medical clinic, a food pantry, laundry services, workforce training center and mental health facilities along with the compact houses.'

'The Current Hand in Hand directors knew that if their community was to be sustainable, they needed to work with established federal and state social service programs. That’s why they designed five homes on the property to be compliant with the American with Disabilities Act and incorporated all the standards required by the U.S. Department of Housing and Urban Development.'

'Planners also tried to make the project financially sustainable by building energy efficient units. They estimate the yearly cost of housing, utilities, provided services, security, and staff to be around $12,000 per resident, compared to the estimated $35,500 taxpayers spend per individual that’s unhoused.'

'As of March 1, Pastor Williams says he has a final hurdle to clear. “There’s only one thing left to do and that’s for HUD to sign off on the environmental review.”

'Williams says he doesn’t have a fixed time for that clearance to come through. Once that happens, however, Hand in Hand will move swiftly to get their pilot group of 10 residents moved in.' ~ Justin Taylor | March 19th, 2024 :: Updated March 20th, 2024

'The problem, LaPlume tells me, isn't St. Lazare's, which by all measures is an exceptional success—offering stable housing to homeless St. Louisans, plus free mental health care and life coaching, all while maintaining nearly a 100 percent retention rate of its residents. Rather, the problem lies with the St. Louis office of the U.S. Department of Housing and Urban Development (HUD), which failed to process St. Lazare's grant renewal in time for its upcoming fiscal year, which started May 1, 2023. Since then, St. Lazare has been forced to pile up thousands in debt while awaiting reimbursement from the city, which the HUD office could not guarantee it would provide.'

'This isn't just St. Lazare's story. St. Lazare House is one of many nonprofits nationwide suffering from dilatory allocation of federal grant money for the homeless. Most of the funding for homelessness organizations comes from the U.S. Department of Housing and Urban Development's "Continuum of Care" grant program, which allocates funding to states for coordinated housing programs for homeless adults and children. Each year, the federal HUD sends around $3 billion to states in grant funding for distribution to their homelessness organizations.'

'Yet every year, millions of dollars are sent back.'

'The investigators in the federal HUD audit probed into how and why federal grant money goes unspent in such massive proportions across the country. Their main finding was a number of issues in the tracking and monitoring of grantee spending. In the absence of clear and well-defined spending procedures for states and localities, they concluded, money is returned—or lost. They also noted the difficulty for grantees in finding affordable housing for their homeless—though affordable housing developers charge {as in accuse} city governments with excessive bureaucratic red tape holding them back.'

'Unlike other agencies jostling for money in Washington, the Department of Housing and Urban Development struggles to spend enough. Halting its efforts at homelessness relief is a crisis of bureaucratic backlogging that withholds grant money from organizations in desperate need—not only setting such organizations up for failure but also forcing their home cities to seek out hasty and underfunded solutions to their housing crises. Funding for HUD is increasing next year by $116 million to cover funding increases for HUD homelessness assistance grants. But until HUD fixes its bureaucracy problem, it's unclear what effect the increase will have.' ~ KATE FARMER | 2.21.2024 2:40 PM

'But politicians should not be shocked by the rise in homelessness, because state and local government policies do not address the obvious supply-and-demand factors that are creating such large numbers of homeless people in California.'

'Despite more than $1.2 billion being spent on this issue in the coming year in LA County alone—roughly $20,000 per homeless person—homelessness will almost certainly worsen in the coming years. And today’s politicians who are trying to deal with roughly 135,000 homeless people within the state can thank previous generations of politicians who presided over decades of badly designed public policies that created this problem in the first place.'

'Substantial regulatory burdens and permit costs are key reasons why building costs are so high in California. Environmental lawsuits can be a nearly endless stream and derail development for 25 years or more. Cash-strapped local governments frequently require enormous buy-ins before granting development permits. Recently, the city of San Jose tried to force a $50,000 payment on an apartment owner to provide maintenance for a park in return for granting a permit to convert his apartment’s recreation room into two small studio units.'

'The state’s current policy is analogous to slowly adding water to a leaking bucket rather than fixing the leaking bucket. A much more cost-effective solution is to focus development in the non-coastal areas of California, where both land prices and construction costs are much lower than in locations such as San Francisco and Los Angeles, and in which there likely would be fewer lawsuits.'

'California cities also need to enforce laws to address the homeless crisis. Typhus, tuberculosis, and hepatitis are widespread in some areas of Los Angeles, San Francisco, and San Diego. City streets are littered with human waste and 2 million used hypodermic needles annually in San Francisco, where one out of every 38 residents has a substance-abuse problem. Tolerating this aspect of homelessness makes everyone, including the homeless, much worse off.'

'The delays were caused, in part, by the onerous amount of paperwork families are required to provide the city’s Department of Homeless services, per state administrative directives, the report says. Adult families must provide documentation of every place they have lived in the past year, and families with children must provide documentation covering the previous two years. Homeless single adults are not subject to the same eligibility process, according to the report.'

“This is particularly challenging for families who were doubled-up or unsheltered for some period after losing their home, and in fact, the vast majority of families are rejected for bureaucratic reasons related to a lack of required documentation that is simply unavailable or impossible for them to obtain,” the Coalition wrote, noting that families are provided “conditional” shelter placements during the application process. “Repeated ineligibility determinations exacerbate stress and instability for homeless families encountering these obstacles.”

'Mayor Eric Adams’ office and the city’s Department of Social Services did not respond to questions about how the city plans to remedy the shelter eligibility issues laid out in the report.' ~ SARA DORN | MARCH 23, 2022

'But as experts have pointed out, the housing affordability crisis is largely a supply-side problem. A mix of pandemic-era shocks, economic instability, interest rate fluctuations, tariffs on building materials, as well as zoning and land use regulations have brought the housing market to a point where supply simply cannot keep up with demand.'

'Biden’s newest plan, however, does take some positive steps in the right direction, as the low-income housing tax credit and the Innovation Fund for Housing Expansion do aim to stimulate supply. They incentivize developers to build more housing or to preserve existing affordable housing. Nonetheless, without comprehensive zoning and land use reform, it is unlikely that people will see a sufficient increase in housing supply any time soon.'

'Unfortunately, the core of Biden’s plan is pure gasoline. The proposal would establish a new two-year, annual $5,000 tax credit for mortgage relief credit, a $10,000 tax credit to families selling starting homes, and a $25,000 down payment assistance program for first-time homebuyers. By heavily subsidizing demand, the White House will increase households’ purchasing power while suppliers are unable to respond to the higher demand.'

'Ultimately, these subsidies may provide people some momentary relief as prices continue to soar. However, they will ultimately worsen the shortage and leave potential homeowners and renters worse off.' ~ Juan Londoño | April 3, 2024 6:00 am

'Exactly how much is California spending to combat homelessness — and is it working?'

'It turns out, no one knows. That’s the result of a much-anticipated statewide audit released Tuesday, which calls into question the state’s ability to track and analyze its spending on homelessness services.'

'Cortese began pushing for the audit after visiting a massive homeless encampment on vacant land near San Jose’s airport, where hundreds of people lived among rodents, massive piles of trash and broken-down cars and RVs. When he started asking whether state funding was going to that encampment, he couldn’t get a clear answer.'

'And despite the Newsom administration pouring billions into the homelessness crisis and launching several new programs aimed at moving people indoors, encampments still are rampant up and down California. The perceived lack of progress led lawmakers to ask: Where is all that money going?'

'San Jose and San Diego each have spent hundreds of millions of dollars on homelessness in recent years. But neither could provide an exact accounting of how much was spent and where it went, according to the audit.'

'And both cities failed to consistently evaluate whether the homeless services nonprofits they contract with are effectively spending city funds. In San Diego, for example, a $1.6 million shelter contract didn’t specify how many people should be served, making it impossible to tell if that program has been successful. Even when the cities required performance metrics from their contractors, they sometimes failed to collect them.'

'Todd Langton does outreach in homeless encampments throughout Silicon Valley in his role as founder of the Coalition for the Unhoused of Silicon Valley and executive director of homeless services nonprofit Agape Silicon Valley. Based on what he’s seen on the ground, he’s “not surprised at all” by the results of the audit.'

'Langton said he often finds small nonprofits are more successful at getting people housed than the larger nonprofits that eat up state and city funding.' ~ MARISA KENDALL | APRIL 9, 2024 :: UPDATED APRIL 10, 2024

'California Governor Gavin Newsom was called out by a reporter after he continued to dodge questions about blowing the state's $24 billion spending on the homeless.'

'Thomas Wolf, a San Francisco-based consultant and former homeless drug addict, called the findings a 'scandal.'

'The state has spent billions on homelessness, and it's worse,' Wolf posted on X/Twitter.'

'Outcomes literally mean everything when it comes to homeless services, and unsurprisingly, they have no data.'

'For some, the audit confirms fears of a 'homeless industrial complex' – a gravy train of funders, officials, shelter owners and charities more keen on swallowing public funds than solving the problem.'

'Despite an exorbitant amount of dollars spent, the state's homeless population is not slowing down,' Niello said in a statement. '

'These audit results are a wake-up call for a shift toward solutions that prioritize self-sufficiency and cost-effectiveness.'

'Newsom has made tackling homelessness a priority, and the growing crisis is sure to dog him should he ever set his sights on a national elected office.'

'A recent DailyMail.com/TIPP Poll showed that more than two thirds of US adults said homelessness was out of control and that officials needed to move those sleeping rough into tented encampments outside towns and cities.'

'The survey revealed that 67 percent of Americans are fed up with the country's fast-rising number of homeless people and want mayors to take drastic steps to tackle the scourge.' ~ STEPHEN M. LEPORE | PUBLISHED: 22:39 EDT, 12 May 2024 :: UPDATED: 03:54 EDT, 13 May 2024

Corporate Limits and Cronies

'There are conspiracy theories about how BlackRock controls everything from global assets to world governments. It's all very dramatic.'

'But let's take a step back and look at what we actually know. First of all, BlackRock is an investment management company. They don't buy houses with their own money; they buy them with their clients' money.'

'Now, there were rumors going around that BlackRock was buying individual homes in the U.S., but they released a statement denying this claim. They did confirm that they are investing $120 billion in building houses for rental purposes.'

'So while it's true that BlackRock isn't buying individual homes directly from homeowners, there are other major institutions that do own and buy houses for investment purposes.'

'Personally, I think there may be more nuance to this issue than just looking at ownership percentages. For example, even if institutions only own 1-2% of homes overall, they may have more influence over market incentives for builders than their ownership percentage would suggest.'

'In other words, if builders see that there is strong demand from institutional investors for rental properties but less demand from individual homebuyers for starter homes, they may be more likely to build rental properties than starter homes.'

'This could contribute to a shortage of starter homes and push up prices for those types of properties even if institutions themselves aren't directly responsible for those price increases.'

The Truth About BlackRock's Plan To Control Real Estate By 2030 ~ Andrei Jikh | November 2023

'A segment of the single-family rental market is indeed controlled by institutional investors, but that started in earnest a decade ago, when homes went on sale in bulk during the foreclosure crisis. The time to care about what this might do to our housing markets was then, not ten years later, when corporate landlords have matured into an entrenched asset class. Nobody should be claiming that this is the sole, primary, or even major reason for soaring housing prices. But it is a serious problem unto itself for the renters unfortunate enough to have to live in these homes. And it’s an indictment of political, activist, economist, and media elites for failing to catch on to the trend until it was way too late.'

'So using BlackRock as a metonym for institutional investing in housing betrays near-total ignorance about the situation. Boise, Idaho’s premier home builder Blackrock Homes probably has more of a toehold in the housing market than BlackRock does. It’s clear that their name was singled out because a lot of Biden administration officials migrated from BlackRock and it fits a conservative populist narrative about captured Democratic governance.'

'They securitize the rental revenue—a version of crisis-era mortgage-backed securities, only with monthly rental payments as the cash flow—and the demands require low vacancies, ever-higher rents, and assorted “cost savings,” which refers to not fixing the sink, really.'

'If there is competition from deep-pocketed investors, the theory goes, families get priced out of home-buying markets. I talked about this at length in a previous piece earlier this month, but the run-up in home prices is almost entirely due to a lack of inventory. There are a variety of reasons for this: builder trepidation after 2008, zoning laws that restrict home construction, a lack of preparedness for a pandemic surge in home-buying demand, and even a squeeze that shot up lumber prices, though that has mercifully dissipated. Investor activity is really only a small part of that.'

'Single-family rental prices are gaining at the fastest rates in 15 years. Investor activity also seems too small to affect the national average. But this is a little misleading; because corporate rentals are concentrated in a handful of areas, they have a higher percentage of all rental housing in those regions.' ~ DAVID DAYEN | JUNE 16, 2021

'While the campaign against institutional homebuyers has largely been a liberal cause, some conservatives have also voiced their concerns about Wall Street’s role in the housing market.'

'Ryan wrote in his new report that lawmakers’ “current efforts to restrict institutional buying of single-family home won’t put downward pressure on house prices if enacted, as their market share is minimal.”

'As well, small investors account for most investor purchases of homes. In the first three quarters of 2023, small investors accounted for 67.6% of investor purchases, while large investors accounted for 15.3%. Medium investors.....accounted for the remaining share.'

'In his note, Ryan conceded that the Southern markets, where investors have concentrated their homebuying in recent years, have seen outsized price growth.'

'However, he argued that it’s more likely that large investors are concentrating their buying in hot markets with higher returns, rather than the investor purchases driving up prices.' ~ Keith Griffith | May 9, 2024

'RealPage, a $9 billion software company that recommends rent raises on millions of housing units across the U.S.'

'RealPage's effects can be seen most noticeably in Atlanta, where software-based pricing affects more than 80% of rentals. Since 2016, rents in the city have grown by 80% — and higher vacancy rates have not driven prices down.'

'The problem with RealPage, according to multiple lawsuits filed in the past two years in California, Arizona, New York, and other states, is that its algorithm increases rental prices in response to data collected from landlords — not according to demand.'

"Using this sensitive data RealPage directed the competitors on which units to rent, when to rent them, and at what price," Mayes stated. "This was not a fair market at work, this was a fixed market."

'Even though RealPage told CNBC that its landlord customers aren't required to use the rent increases its algorithm recommends, a 2022 investigation by ProPublica revealed that landlords accepted 80-90% of the algorithm's suggestions.' ~ SHERIN SHIBU | JUN 4, 2024

'Officials say landlords worked together using the property management software RealPage to collude and raise rent prices at the same time by similar amounts, said Lance Lambert, co-founder and editor-in-chief of housing market analytics company ResiClub.'

“But if you zoom out, the truth is that across housing — and it’s not just rents, it’s also home prices, which are up 47% since the onset of the pandemic — is that we’ve seen a deterioration in housing affordability,” Lambert said Wednesday on “NewsNation Now.”

'Rent prices have risen 30% nationwide in the past four years, nearing an average of $2,000 per month in March. That average was $1,639 in 2021, and $1,594 in February 2020, according to Rent.com'

“Maybe some of the practices here are illegal and they’re going to get taken out of the market, but big picture, what fundamentally pushed up housing prices and rents is much bigger than any potential collusion in the market,” Lambert said.'

“It’s not just rents,” he said. “It’s home prices. It’s home repairs. It’s the whole housing sector really just in a squeeze.” ~ Nick Smith, Katie Smith | Updated: JUN 5, 2024 06:24 PM CDT

'Landlords are being sued for using illegal price-fixing to drive up rents across the country. They allegedly conspired with RealPage, a tech company, to use non-public data to artificially inflate rents. Rents have spiked by 26% since the pandemic.'

Why Is the Rent So Damn High? The Real Reason Will Shock You ~ More Perfect Union | Apr 18, 2024

'The Federal Reserve has launched an unorthodox two-pronged program of monetary tightening, which has had a severe impact on the housing market.'

'The combined effect was a sudden ratcheting up of the costs of borrowing for homeownership — along with serious distortions of the real estate market, which have led to a breakdown in its normal functioning.'

“The monthly mortgage payment on a typical U.S. home has nearly doubled since January 2020, up 96.4% to $2,188 (assuming a 10% down payment).” (For comparison, the average monthly expenditure on gasoline – often perceived as a prominent source of inflation – is about $150-200.)'

'In summary, doubling the cost of new credit for this enormous market, in a very short period of time, must have an outsized impact on asset values, on supply and demand for houses, and on public psychology.'

'The Fed’s push into the MBS market in the QE phase had been large enough to raise concerns about the effects of unwinding that position....... Reversing the process to exit from such an enormous position inevitably introduced a high level of uncertainty about the direct and indirect effects on markets where for a decade the Fed had been – and now no longer would be – the single most dominant market participant.'

'Higher rates strangled the supply side of the market. Listings dropped as “movers” who might have wanted to purchase houses held off, discouraged by the prospect of exchanging a low fixed rate mortgage for a new much higher rate.'

'The effect of the Fed’s rate increases was small initially, and showed signs of renormalizing – until the start of QT, which crushed the market. Inventories declined, and the market remains deeply imbalanced.'

'From 2000-2019, the relationship between Treasury bond market and the Mortgage market was fairly stable, with an average spread of about 170 basis points (bps).'

'After QT officially began in June 2022, the spread between the mortgage rate and the Treasury market more than doubled – and remains elevated far above pre-QT levels.' ~ George Calhoun | Mar 13, 2024, 03:58pm EDT

'Keep in mind that any time that something is subsidized or incentivized then that means it creates extra demand and thereby higher pricing.'

'The first and probably the largest way they do this is through lending. But they do it in many ways.'

'The first way is through insuring lower down payment mortgages. The government does this through their Fannie Mae, Freddie Mac, FHA and VA programs. They provide assurances to banks thereby reducing the risk that a bank has on a lower down payment borrower. With a reduction of risk, then that means the bank is more than willing to provide loans to potential lesser qualified borrowers.'

'First and foremost, again. The Federal Government subsidizes the loan expense on a primary residence by giving homeowners the ability to write off the interest on their loan. So the government subsidizes the loan and then gives the borrower an even bigger subsidy by providing a tax incentive each and every year.'

'In some markets throughout the United States, investors contribute nearly or over 30% of all single family sales. And these aren’t small markets. Think Atlanta, Phoenix, Raleigh.' ~ Jeffrey Chubb | December 7, 2023 at 2:38:43 PM

'Even if your tiny home follows local zoning, ordinances, and other building regulations, traditional banks might deny your request for a mortgage because of the relatively small loan size. Banks have built-in fixed costs for the mortgage packages they offer, and smaller financing amounts are often unattractive to the banks—and they can be expensive to the homeowner. Banks might deny applications for tiny house mortgages, claiming that a tiny home is not real estate.' ~ Tobias Roberts | Feb 14, 2019

'Research has explored mortgage access at different loan amounts, such as below $100,000 or $70,000, and found that small mortgages are scarce relative to larger home loans. Those analyses show that applications for small mortgages are more likely to be denied than those for larger loans, even when applicants have similar credit scores. Although the existing research has identified several possible contributing factors to the shortage of small mortgages, the full spectrum of causes and their relative influence are not well understood.'

'In conversations with Pew, lenders, consumer advocates, and government officials identified several potential structural and regulatory obstacles to small mortgage lending. These include the high fixed cost of origination, commission-based compensation for loan officers, the poor physical quality of many low-cost housing units, and various rules and regulations that help protect consumers but may add cost or complexity to the origination process and could be updated to maintain safety at lower cost to lenders.'

'A diverse array of stakeholders, including regulators, consumer advocates, lenders, and researchers, support policy changes to safely encourage more small mortgage lending. And policymakers have begun looking at various regulations to identify any that may inadvertently limit borrowers’ access to credit, especially small mortgages, and to address those issues without compromising consumer protections.' ~ Tracy Maguze, Tara Roche, and Adam Staveski | June 22, 2023 Updated: July 3, 2023

America's #1 Home Builder Admits to Market Manipulation ~ Real Estate Mindset | Jul 8, 2023

Housing Alternatives

'If you’re interested in purchasing a Red Sky Shelters Yome package or product, please contact us so that we can properly assess your needs and fulfill your order as soon as possible.'

'Here at American Log Homes & Cabins, we specialize in bringing your log home dreams to life with our exceptional collection of thoughtfully crafted log home plans.'

'The Most Cost-Effective Log Cabin Building System Available Anywhere!'

'SMALL & MIDSIZE CABIN KITS'

'If you’re looking to build a tiny home, consider working with your contractor to use a Premier as the starter shell.'

Tiny home models from 84 Lumber.

'No remodel tear outs, no shared walls, no huge mortage...just a new designer home at an amazing price.'

'Our hard-sided yurts are a unique twist on our base yurt design that give you a truly glamping cabin feel. Each kit comes standard with everything you need including the frame, insulated walls, windows, a door and roof.'

'Experience unparalleled insulation, expansive living areas, and luxurious amenities. Introducing our innovative A-frame glamping solution, crafted to provide the epitome of outdoor indulgence, anywhere you desire.'

'For the last few years we have been working on genuine affordable housing solutions and alternative housing options; from glamping tents to tiny houses. We first got inspired a while ago when the Tiny House Movement became popular. We quickly realised we want to offer more than the traditional Tiny House on Wheels, and have ventured into a broader range of innovative housing solutions.'

'Our modern structures can be insulated against heat and cold to create a safe environment for families, tourists, and conscientious travelers.'

'We now offer Fiberglass Dome Houses and Structures. Initially designed as a fast and safe shelter for natural disasters and other emergency relief efforts, the Fiberglass Domes have proven to be effective in an ever expanding array of uses.'

'If you need instant modular buildings, rely on the expertise of InterShelter, Inc. With over 25 years of experience providing exceptional products, we are confident that we have the perfect shelter for your needs. Our domes are suitable for a variety of conditions and environments, and our team is proud to provide exceptional customer service.'

'Reliable shelter is essential for basic human life. It can provide us comfort, security, and protection. At InterShelter Inc., we offer a quick, cost-effective solution with the ability to tailor to your specific needs. Whether you need a camping site, military command post, emergency relief, or a getaway, we have you covered.'

'From rapidly deployable disaster relief shelters, to fully customized luxury glamping domes, NovaDome shelters have unlimited potential with hundreds of applications. Pair that with the ability to be constructed anywhere in the world, we believe that our NovaDomes have the potential to change the way the world approaches portable shelter solutions. Forever.'

Tiny home village complete after ‘cranking out’ a house a week for 2 years ~ CBC News | April 2024

'Meet the Grande S1, a foldable tiny house on wheels by PODX Go. It unfolds & folds with basically just a push of a button. In just 15 minutes, it expands from a road-ready 8.5 feet wide to a spacious 22.5 feet wide! This NOAH-certified, single-level tiny house features smart home tech, comfortable transforming furniture & a Renogy solar power system.'

Foldable EXPANDING Tiny House on Wheels - unfolds to 22 ft wide! ~ Tiny House Expedition | Aug 11, 2023

'Rohan and his team have designed a really clever folding prefab home that folds up origami-style to 1/3 of its size so that it can be transported anywhere (on trucks, trains, and planes) and then it can be put on a foundation, unfolded, and weatherproofed in just one day. Rohan's inspiration was a trip to a village in India where he saw the housing crisis and this got him thinking about how to get housing into remote communities, and that's where the folding idea came from. But it turns out that these folding houses can also be used in urban areas as laneway homes, backyard homes, and more!'

Clever Folding Home Can Be Transported Anywhere & Unfolded in a Day - PREFAB HOUSE ~ Exploring Alternatives | Jan 6, 2024

'BOXABL is on a mission to bring building construction in line with modern manufacturing processes by creating a superior residential and commercial building that can be completed in far less time and cost than traditional construction. The core product that we offer is the “Building Box”, which consists of room modules that ship to site at a low cost and can be stacked and connected to build most any shape and style of finished buildings, with our first product being our 19x19 ft. Casita Box.'

BOXABL Homes Out in the Wild ~ Ellie in Space | Jan 25, 2024

Part #1 !!!! Build A 600 sq Foot Tiny Home For $18,000 Oh Yes You Can!!!!!! Part Two Coming Soon!! ~ JeepManKing | 2023

We have built the cheapest house in 5 days. Fast construction technology ~ Papa Technologies | December 2023

We built a warm round house. Step by step construction process ~ Papa Technologies | Sep 6, 2019

We built a cheap house in three days. Step by step construction process ~ Papa Technologies | 2023

We built a small house in three days. Step by step construction process ~ Papa Technologies | 2021

6 Great PREFAB HOMES #8 ~ CGS Tech | 2021

5 Innovative BUILDING SYSTEMS for your house #3 ~ CGS Tech | 2021

It's Happening! Another 50K PREFAB HOME is entering the market!! ~ Kerry Tarnow | 2023

Small Housing Infrastructure Alternatives

Hand Pump Wells .....Deep Dive ~ Bushradical | 2023

Home built passive solar air heater ~ PeterQBrownDesign | 2012

'Alternative water systems, such as Aqwuaria’s atmospheric water generators, refer to a range of water treatment and distribution approaches designed to provide safe, sustainable, and affordable water to homes, communities, and businesses that want to find alternate or complementary solutions to conventional water sources. Some of these systems include rainwater harvesting, atmospheric water generators, greywater recycling, and reclaimed wastewater, among others. Read on to learn more about alternative water systems and how implementing one may benefit you.' | March 20, 2023

'Greywater is the water produced during daily household activities like bathing or washing clothes. An efficient way to maximize greywater disposal is through the use of a greywater recycling system. A greywater system filters the water using a highly effective multi-stage filtration system to remove lint, hair and impurities. Instead of traveling through your septic system, the filtered greywater is diverted to flower beds and gardens, creating an efficient irrigation system.'

'The Loveable Loo is a compost toilet that requires no water, plumbing, pipes, vents, drains, electricity, or urine separation. It's a toilet that makes gardens rather than sewage. It's designed to collect toilet material so that it can be composted in a compost bin. This 11-minute video provides a brief overview on the toilet and the processes. Filmed by Joseph Jenkins, author of the Humanure Handbook.'

Loveable Loo Compost Toilet Overview ~ Joe Jenkins | 2017