Economics Matters by Laurence Kotlikoff Podcast Why Today's Housing Market Is Crazy 3 1 1× 0:00 Current time: 0:00 / Total time: -55:04 -55:04 Audio playback is not supported on your browser. Please upgrade. Why Today's Housing Market Is Crazy Answers from Boston University's Superb Economist, Adam Guren Larry Kotlikoff Apr 17, 2024 3 1 Share Transcript Why are housing prices so high, mortgage rates out of sight, construction costs off the roof, and homeownership in urban areas unaffordable for all but the very rich? Adam Guren is my brilliant colleague at Boston University, whose economics department, if I may brag for a moment, is one of the best in the world. Adam is one of the country's top young macro economists. But his forte is housing and mortgage markets. Want to know if you'll ever be able to buy a home or move, Adam has answers. Take a listen and please share. PS, Anyone can receive a lifetime free subscription to my podcast by emailing me at kotlikoff@gmail.com . Send me all your contact emails if you want. The more the better! Topics Covered: Housing Market Dynamics Construction Cost Crisis Financial Crisis Retrospective and Future Policies Affordable Housing Strategies The value of this discussion lies in its ability to dissect and clarify the complex engine that drives housing markets, while also offering grounded, forward-looking perspectives that house hunters, investors, and policymakers will find indispensable. Time Stamps: 00:00 Discussion on housing and mortgages in economics. 05:03 Unusual housing market driven by low inventory. 08:15 Housing construction challenges persist despite labor shortage. 11:10 Housing cycle shifts, prices decrease in Iowa. 13:04 Builder prefers rentals over condos, avoids conflict. 17:00 Studying building approvals and property tax abatement. 21:29 Increased supply needed, gradual process ahead. Zoning reform. 25:38 High office building vacancies may trigger financial crisis. 28:18 Sacrifice space for better job opportunities, investment. 33:17 Rising mortgage rates make current period painful. 34:21 Prepayments on mortgage-backed securities fell unexpectedly. 39:57 Financial Crisis Inquiry Commission report reveals causes. 42:12 Credit expansion broad, not just subprime growth. 47:13 Discussion of multiple equilibria in financial crisis. 50:10 Stock market vs real estate wealth impact. 53:31 Research improves understanding of mortgage modification. This conversation offers valuable insights as the discussion navigates through the intricacies of today's housing challenges Subscribe Check Out MaxiFi Planner Economic Matters - The podcast is hosted by Laurence Kotlikoff and moderated by Alex Kotlikoff. Laurence Kotlikoff is a Boston University Economist, a NY Times Best Selling Author , President of maxifi.com , and Author of Money Magic . Stay Connected: Facebook , Twitter , LinkedIn Apple Podcasts Google Podcasts Spotify iHeart Amazon Music Discussion about this episode Comments Restacks Economics Matters by Laurence Kotlikoff Podcast Economics can make a massive difference - collectively and personally. Listen in as we chat with some of the most influential leaders in economics across the globe. Economics can make a massive difference - collectively and personally. Listen in as we chat with some of the most influential leaders in economics across the globe. Subscribe Listen on Substack App RSS Feed Appears in episode Larry Kotlikoff Recent Episodes Naill Ferguson, the Preeminent Economic Historian, Talks Geopolitics -- Yesterday's, Today's, and Tomorrow's Aug 10 • Larry Kotlikoff Jack Schibli of Lane Generational Explains Why the Stock Market Runs Largely on Autopilot and the Equity-Investing Danger this Presents Aug 2 • Larry Kotlikoff The Brilliant and Captivating Justin Wolfers Talks Economics and the Economy Jul 31 • Larry Kotlikoff Economics Matter's First Substack Live! Talking Social Security's Extreme Insolvency with Pam Krueger, Founder and CEO of Wealthramp, and… Jul 29 • Larry Kotlikoff Brilliant Investing Requires Thinking and Looking Outside the Box -- Steve Laffey Is an Extraordinary Investor. This is a Podcast You Can't… Jul 23 Economist John Goodman, Father of HSAs and One of America's Most Influential Policymakers, Talks US Healthcare Reform Jul 16 • Larry Kotlikoff Bruce Mehlman Joins Economics Matters to Discuss the Long-Term Economic Impact of the War in Iran, Geopolitics, Economic History, and His… Jul 2 • Larry Kotlikoff Sebastian Mallaby Returns to Discuss AI and his Latest Bestseller: The Infinity Machine. Jun 25 • Larry Kotlikoff