Acute Housing Shortage Carries Health Risks For Aspiring First Time Home Buyers

It’s no secret that there’s a housing shortage in the U.S. and there’s plenty of blame to go around for its myriad causes. These range from the homebuilding industry citing laws and regulations like California’s Environmental Quality Act (popularly known as CEQA), to immigration advocates pointing out a shortage of foreign construction workers exacerbating an ongoing labor problem, to housing professionals criticizing NIMBYism and vacation rentals, to economists noting the lock-in effect of rising mortgage rates preventing moves, to builders choosing to build single family rentals rather than for sale homes in a recently-expanded BTR trend, to 60 Minutes turning the camera on investors converting resale properties – especially at the starter home level – to rentals with a dramatic headline: “Would-be home buyers may be forced to rent the American dream, rather than buy it.”

Dream Deferred

Why has homeownership been held up as the “American Dream” for more than a century? Lenders, builders and real estate professionals have certainly promoted it as a business opportunity for their firms, but its enduring popularity with everyday Americans and their elected officials speaks to more than pure commerce.