The Housing Theory of Everything
What matters is that housing shortages may be the biggest problem facing our era, and solving it needs to become everyone’s highest priority.
Ben Southwood • The Housing Theory of Everything
when housing is scarce in high-productivity areas, some people are priced out of the area altogether, so they can’t move within range of better jobs.
This means that many people are working in less productive jobs than they could if it was easier for them to move to more productive places. Their wages and productivity are lower and it’s harder for h
... See moreBen Southwood • The Housing Theory of Everything
Expensive housing is lose-lose. People can't afford to live where they would be most productive, so they work a less productive job elsewhere and their would-be coworker suffers from weaker teammates.
So the obvious effect of expensive housing is that people often spend a lot of their money on renting or buying their home, leaving them with less money to spend on other things, especially if they live in and around the Western world’s most wealthy cities. And the problem is getting worse.
Ben Southwood • The Housing Theory of Everything
Increased housing regulations = less new builds = more expensive housing = less consumer spending.