Why We Have a Housing Crisis
an interview and a reflection on the American Dream
Housing housing housing! Buy the book here (ch 10 is on housing) and don’t forget to leave a review! Thank you so much everyone.
We had a Fed meeting yesterday, where the Fed held rates steady and said “hey listen, we need to see more data but probably one cut this year maybe considering the election it’s all unknown everything is unknown in the vast expanse of the universe”. We also had a CPI (consumer price index) print, which showed that inflation was indeed slowing in most parts of the economy, but again we need to see more data. But - inflation was not slowing in housing. Never housing.
Part of that is a total disconnection between metrics and reality. The way that we measure shelter inflation is a bit fuzzy. Real time shelter inflation is actually… slowing. But there’s a lag. We measure housing inflation through two lenses:
Rents, which captures the actual rents paid by tenants for leased properties and changes when leases renew or tenants move
Owner’s equivalent rent (OER), which …
