Code Over Concrete: How Tech Developers Are Killing the American Dream of Homeownership
Download MP3Key Topics Discussed:
- Housing Crisis Reality Check - The common belief that building more houses will solve the housing crisis may not be realistic, whether dealing with homelessness or unaffordable housing costs
- Construction Nosedive - According to realtor.com data citing government records, home construction is experiencing a significant decline as builders pull back from speculative building
- Rising Construction Costs Creating Barriers - Multiple factors are driving up building costs including inflation, lumber prices, materials costs, and higher labor expenses needed to attract workers
- Market Forces Working Against Construction - Fewer people are buying homes due to high interest rates, creating a supply and demand imbalance that discourages new construction
- Future Housing Shortage Predicted - Even with current inventory available, experts predict serious housing shortages in 18-24 months when demand returns but new construction hasn't kept pace
- Expensive Building Reality - Building a basic spec house now costs $200-250 per square foot, meaning a 2,000 square foot home costs around half a million dollars to construct
- Market Standstill Situation - Sellers can't drop prices too low due to existing mortgage obligations and equity needs, while buyers refuse to pay current asking prices
- Starter Home Affordability Crisis - Traditional $400,000-500,000 starter homes are no longer viable for most buyers, especially with interest rates above 7% creating $4,000-5,000 monthly mortgage payments including taxes and insurance
- Real Estate Market Paralysis - The combination of high costs, high interest rates, and mismatched buyer-seller expectations has created a market where very little property is actually changing hands
