Category Archives: Housing and housing finance

Preach it, brother John

John Cochrane writes, there is a deep lesson in their style of modeling: Heterogeneity. Misallocation. Dispersion. Inequality. The key lesson is not that “regulation is killing US firms on average.” The US as a whole is doing badly because firms … Continue reading

Posted in Housing and housing finance, PSST and Macro | 13 Comments

Land prices in San Francisco

Robert L. Cutts writes, Homes… now sell for 15 times the average salaried worker’s annual gross wage. Even small condominium units… sell for nearly 10 years’ pay. First-time buyers would have to contract 50- to 90-year mortgages to make the … Continue reading

Posted in Economic History, Housing and housing finance | 13 Comments

Non-bank Mortgage Lending

Greg Buchak and others write, the market share of shadow banks in the mortgage market has nearly tripled from 14% to 38% from 2007-2015. In the Federal Housing Administration (FHA) mortgage market, which serves less creditworthy borrowers, the market share … Continue reading

Posted in Housing and housing finance | 7 Comments

The outlook for today’s young adults

Joel Kotkin and Wendell Cox write, They have entered an economy where the most rapid job growth for their generation has been in generally low-paying professions, such as leisure/hospitality and healthcare, while jobs in higher-paying fields such as information, finance, … Continue reading

Posted in Housing and housing finance, income distribution-wealth-poverty | 19 Comments

Affordable Housing is a Supply Problem

Ed Glaeser writes, If demand alone drove prices, then we should expect to see places that have high costs also have high levels of construction. The reverse is true. Places that are expensive don’t build a lot and places that … Continue reading

Posted in energy and the environment, Housing and housing finance, Tyler Cowen is my Favorite Blogger | 8 Comments

House price-to-income ratios across cities

I find this sort of data fascinating. In Detroit, median house price is $38K and median household income is $26K, for a ratio of roughly 1.5 In San Francisco, with a median house price of $1.1 million and median household … Continue reading

Posted in Housing and housing finance | 12 Comments

Financial Policy if I were in charge

This afternoon, I am supposed to participate in a discussion of financial regulatory policy. There are so many participants, including big shots like John Taylor and John Cochrane, that I may end up not saying anything. I probably will just … Continue reading

Posted in Financial Crises, financial markets, Housing and housing finance | 32 Comments

The Source of Systemic Financial Risk

Charles Calomiris says that it is the political system. There are two important systemic threats to financial stability: government policies that subsidize mortgage risk, and government policies that insure bank debts (and, more generally, that subsidize bank default risk through … Continue reading

Posted in Financial Crisis of 2008, Housing and housing finance | 8 Comments

Restrict Supply, Subsidize Demand

The Los Angeles Times reports, Home builders are not keeping up with demand for homes in California. There just aren’t enough homes being built relative to the growing number of households in California. What is the “solution” to this supply … Continue reading

Posted in Housing and housing finance, public choice | 9 Comments

The State of the Housing Market

Scott Sumner writes, It looks like the supply side is being hit by a triple whammy of adverse supply shocks These are problems with funding, land and labor supply. I think that the problem boils down to land in a … Continue reading

Posted in Housing and housing finance, Scott Sumner is Coherent | 35 Comments