We have not addressed the Affordable and Accessible Housing Crisis in some time, however, the last few days headlines suggest it is going from bad to worse.
The front page feature in Sunday’s WaPo spotlighted the convergence of bad Agency policies, programs and controls that have created a crisis in the Federal District. (“Forced Out: The Cost of D. C.’s Condo Boom.”)
The news is no better is Fairfax: “Some Homes Once Crowed Now Vacant: Fairfax Crackdown (on “over-crowed” dwellings) Has Unintended Consequences. An Hispanic immigrant was carrying a $550,000 mortgage on a house that sold at foreclosure auction for $120,600?
And the chickens are coming home to roost for Agencies as well. “Damage From Downturn May Be Worse Than Expected: Officials Say Rising Foreclosures and Drop in Spending May Force Revision of Feb. 25 (Fairfax County) Budget Proposal.”
On Friday the business news was headlined by “Investors Dump Securities From Fannie, Freddie: Mortgage Sector Strongholds Falter.” We have said for years the crime at Fannie and Freddie was not the huge salaries and coverups but rather the loan bundling was location-blind thus leveraging support for building the wrong size houses in the wrong locations.
Speaking of crimes, CNN reports that the FBI is looking into fraud at Countrywide Mortgage. Citibank is reported to be in trouble with subprimes…
And the ads keep rolling in; on paper; on Television; and on banners running over Google searches and under AOL e-mails for refinancing…
Financial Enterprise deregulation has really worked well. For lawyers and criminal investigators.
It is not just homeowners that are hurting from a drop in dwelling values and wild lending practices. The whole economy is on weak grounds.
You may have missed it but the Federal Reserve on Thursday announced that for the first time since 1945, owners equity in homes in the US of A dropped under 50 percent. Since 1945! Recall how many new houses were built and sold with very low down payments after World War II. But then this: The only reason that the 1945 date was in the press release is that 1945 was the first year they kept this record.
See “Good News, Bad Reporting” at db4.dev.baconsrebellion.com
Note for Larry Gross:
I just saw your note to us under the Atlantic Reality Falls Church post by Jim Bacon.
You are right “RuralZED” housing is not a useful term. I will check out the links you provided when I get back to the Housing Chapter of TRILO-G.
In the meantime, just because a dwelling has no connection to the grid for energy, water or sewer does not mean it does not have location-variable costs. There are 35 + / – other goods and services to be concerned about.
And speaking of eco-footprints, Larry, check out “Eat Locally, Ease Climate Change Globally” an op ed in WaPo Sunday. A farmer from Abingdon provides some numbers on the cost of food transport.
I know, I know you worry about mangos and papayas when you cannot eat them right off the tree. Do not get me wrong. We love mangos and papayas. Mangos are called “winter peaches” in our Household.
The answer is the same, price them for what they really cost to grow and ship and then let the market decide if they are a four times a week item or a once a month item.
Of course if you do not have a house and no refrigerator you may have to wait until Global Climate Change allows them to be grown in Appalachia. But maybe they can be now in that big green house… Does not look very wind proof…
EMR