Category Archives: Housing and housing finance

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 | 4 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

A Good Start on Mortgage Finance

According to this story, The Department of Housing and Urban Development said Friday that the reduction to the annual mortgage insurance premiums borrowers pay when taking out government-backed home loans has been “suspended indefinitely.” …Borrowers with larger home loans would … Continue reading

Posted in Housing and housing finance | 4 Comments

Freddie, Fannie, and so-called Privatization

The WaPo reports, Steven Mnuchin, President-elect Donald Trump’s nominee to lead the Treasury Department, said Wednesday that privatizing Fannie Mae and Freddie Mac is “right up there on the top-10 list of things we’re going to get done,” setting off … Continue reading

Posted in financial markets, Housing and housing finance | 6 Comments

California’s Housing Shortage

Mckinsey folks estimate it at 2 million. Pointer from Alex Tabarrok. The market clears, of course, but at a price point that is very high relative to income. Presumably, this is a supply problem. You do not cure a supply … Continue reading

Posted in Housing and housing finance | 8 Comments

Mortgage Loan Limits, Housing Demand, and Supply

Tobias Peter writes, In the mortgage business, the drumbeat for the government to support more leverage is a constant, occurring in both a buyer’s and a seller’s markets. But it is the latter that has potential for dangerous buildup of … Continue reading

Posted in Housing and housing finance | 4 Comments

The Affordable Housing Violins

A commenter writes, Somewhat apropos of this post, it would be interesting to read a response from Arnold, or a likeminded person, to the following: Kevin Erdmann Erdmann in turn links to this commentary from Treasury. Behind these statistics are … Continue reading

Posted in Housing and housing finance | 16 Comments

Timothy Taylor on Home Ownership Trends

He writes, Notice that homeownship rates tend to be much lower in large cities: indeed, if a homeownership rate below 50% seems implausible to you, you might reflect on the fact that this is already a reality in US cities. … Continue reading

Posted in Housing and housing finance | 14 Comments

More Lifted from the Comments

Kevin Erdmann writes, The way costs serve as a filter is by constricting supply. Those cities are well past the cost level that would trigger supply. So, a unit that would cost $300,000 is already worth $1 million. To build … Continue reading

Posted in Housing and housing finance, public choice | 16 Comments

Set Up for Failure

W. Scott Frame, Kristoper Gerardi, and Joseph Tracy write, The extinction of the private subprime market and the rapid rise of the government insurance programs may strike many as a largely positive development. After all, it was the subprime segment … Continue reading

Posted in Housing and housing finance, Mark Thoma is Indispensable | 11 Comments