Strongly recommend this book for anyone interested in housing. And of-course, everyone would be somewhat interested in it because it is such a basic "goal" on almost everyone's list.
The book talks about in detail the problems that are plaguing the housing market - why at some places rents and prices are exorbitantly high, through multiple interwoven stories.
Housing is such a vast and complex subject. It has so many aspects to consider. Some of them that I can think of are -
- Affordable Housing
- Gentrification
- Homelessness
- Climate Change (yes even climate change. Third of the greenhouse emissions are from transport. If people cannot afford close to live close to where they work, they drive to work daily. Let's be honest on an average public-transport is poor in most of the world).
- Zoning Laws (or laws governing how houses need to be built)
- NIMBY/YIMBY
- Redlining
- Evictions
Reading it I had moments of realizations and exasperations in equal measure.
- It seems quite unfair to me that the neighbors can bully the developers to build less housing on the pretext of it'd bring in more crime, spoil the nature of the neighborhood. A new excuse now is the effect on the environment. City councils often bow down to such pressures.
- The above ideas can be clubbed under NIMBYism. Also, common is that people objecting are already house owners and make claims like - "...I have no problems with affordable housing but it needs to be built in the right place."Emphasis on right. Also, contributing is the perverse incentive of house price. The law of economics is that if something is in short supply it'll become more valuable and its prices will shoot up.
- Listening to an interview of the author, the significance of title of the book GOLDEN GATES dawned on me. Remember how in ancient times people who were poor used to live outside the city gates? Similarly, now we have these tendencies to thwart new housing to be built so our "homogeneous, affluent" neighborhood vibe is not disturbed.
- Local politics is scrappy but that is where decisions about approving/denying housing projects are made. Most people do not pay attention to it let alone attend those meetings. But that's what helps people with vested interests (shills) to get the council to do what they want. Also, would note that legislation or passing laws involves serious amount of paperwork and technicalities.
- To be realistic, the government alone cannot fix this problem. Cue innovation and technological disruption. Housing Construction is one of the industries that has not seen enough advancement and improvement in terms of productivity.This is where lots of companies like Blokable building modular homes - can come in to help. Imagine a factory churning out houses which just need to be nailed together at the site. Such a process can help a great deal with the supply. However, there's another problem with these - the stigma!Notice how there's a certain kind of perception on those living in trailer homes? What is to say it won't happen with modular homes? What if people from an affluent neighborhood object to modular homes being set up near their area? Do you think the VC or the founder of such modular homes companies would themselves live in this modular home? I think the only way this perception problem would get solved is perhaps if big giants like Amazon jump into this business and make it acceptable and we would see a change in perception in matter of a generation.
Overall, it's a good read if you want to understand what plagues the housing market.
