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by GodelNumbering 7 days ago
> undeniably a little cool that luxuries got cheap, but it's severely un-cool that necessities got expensive

Well said. Being told that 'you should be happy without owning' to a party that can't afford to own by another party who is actively scooping up the same resource can feel extremely invalidating.

My personal take is that a lot of support for contemporary political extremism in many countries comes from the fact that a significant portion of population is pissed off and see no realistic chance of the 'settle down and thrive' life, not because they are racist/prejudiced or whatever (although labeling them as such only makes things more extreme)

4 comments

> Being told that 'you should be happy without owning' to a party that can't afford to own by another party who is actively scooping up the same resource can feel extremely invalidating.

It's not really coming from those though? At the same time that housing costs have ballooned, we've also had a significant migration back to cities. When a larger % of the population are living in high density locations you are going to naturally have a larger % not owning homes. Owning your own home does not align with the density required for a city to function.

At the least, narrowing down the topic to 'Why do people rent instead of own a condo?' is a much more meaningful topic over 'Why do people rent instead of own a SFH?' since a condo is a more viable option in locations where most of the renters are.

> Owning your own home does not align with the density required for a city to function

Much of Europe would like a word. I grew up in a block of flats where everybody owned. 16 apartments, around 60 people, lived on the footprint of a typical American house. All our parents were homeowners, together they owned the building. Two buildings actually and the land they stood on.

So a total of 32 apartments, 120 people, a small parking lot, and a bit of green lawn owned by the people who lived there and self-governed through a sort of HOA. Little communities like this were extremely common in the city.

Nowadays with my generation homeownership is becoming a little more rare. Still people own apartments in these self-governed buildings, but many have become priced out. Too much demand not enough build.

Why does being in a city “naturally” mean less home ownership? More demand and higher prices yes, but you also should be earning more and dense housing projects should be trivial to justify. It’s legislation all the way down, politicians protect the interests of the wealthy who want to rent seek regardless of location. Look at how mamdani got a common sense luxury home tax in NYC, before that ultra wealthy owned multiple homes just because they could.
Because multi-family buildings (required for higher density) come with more complicated ownership models. Owner occupied triple deckers in Boston, for example, often come with their own condo associations because there needs to be some way to handle the shared maintenance and expenses.

That's for a three unit building. Now scale that to a twenty or one hundred unit building. At some point, it makes sense for a single entity to handle the common maintenance through outright ownership and rent. Individual families have the flexibility to leave if things suck without being financially tied to the building long-term and subject to changes in housing prices. Yes, moving as a renter is expensive. It's still lower cost and friction than moving as an owner.

Source: rented for years in cities. Now happily a homeowner in the hinterlands of Vermont.

A counterpoint is that a huge number of suburban Americans already have experience with a condo association through being in an HOA.

Rural homeowners and people with single family homes in streetcar suburbs or cities don't, but most new developments already have an organization with dues for shared maintenance.

Pulling from fuzzy memories here, but to my knowledge the legal framework for the bastardized entity known as Homeowners Associations here in the US originated from the exact thing your describe; multiple person ownership in parts of a single building.
One thing soviet commies did right was housing builds. Build factory for city blocks, then just pop them up, constantly, keeping the line busy.

It should really be city that is building the new housing (even if in the end it gets subcontracted, at least the top level have vested interest in keeping the quality and cost in check). Maybe even offer some rent-to-own programs where part of rent gets put into savings that can be used to either buy it after few years of use or be withdrawn when moving so renter have nice lil bit of money to put forward for buying new apartment/home.

Then the city can actually plan for it, rather than hope housing developer that bought the land does something good for city and not just their own pocket.

China and their ghost cities of unoccupied high rises would say otherwise
>One thing soviet commies did right was housing builds

And yet, the housing was a much bigger problem in the USSR than what amounts to "housing crisis" in the USA. One of the big points of the CPSU platform was to provide non-shared living accommodations to each family by the year 2000 (the USSR collapsed before that but the Party admitted they are not meeting the demand already in 1989). In rich cities most of these pre-made buildings had been already scraped.

There's no need for the city to build it, they have zoning plans, and they can easily zone "that corn field over here" into an aera of commie-style apartment buildings (5+ floors, commercial on ground floors, apartments above, garages underground), and assign some percentage of space for green areas.

I live in one of those used-to-be-commie countries, and we somehow manage to keep cornfields in prime locations, and in many areas, the most the local government allows you to build is a two-apartment two-story house, but none of the non-built land is actually buildable, so you need to demolish something else first. Here and there someone is able to build something with maybe 6-8 apartments (probably with an envelope switching hands), but that's it.

It's as if some rich people connected to the government managed to get a lot of realestate in the 1990s when communism fell, and now they don't want prices to drop. But hey, we're building office buildings without any issues and making airbnb even easier instead... so yeah... the situation is pretty bad.

> One thing soviet commies did right was housing builds

I disagree. I have yet to see a nice-place-to-live low-income project. In USA Russia Brazil or Southeast Asia.

There are plenty in e.g. East Berlin. High rises with alot of parks around.

You need to imagine them as they were new though.

Does this look like a bad place to live? https://en.wikipedia.org/wiki/The_Round_Houses_in_Moscow

Easter European commie blocks usually have strategically placed parks, shopping, kindergartens, schools, medical facilities within walking distance. For this reason, apartments in these areas are actually appreciating at a faster rate than housing built from the 90s onwards. It's hardly a Pruitt-Igoe.

Most people don't see that as viable because American cities don't have the public transit needed to make that viable, and equally important, don't have condos built that are the size of a family home. And there's a big push among suburban parents to judge their kids for living in cities, even if they're not as dangerous as the parents think.

If we modeled Spain, we could have more condos. That would require good, safe transit, condos with green space and multiple rooms at a SFH price point, and a cultural change among the older generation to view cities as having less crime.

Housing costs have boomed and are still booming in rural areas and regions where the population is decreasing and all young workers are moving away.
"…not because they are racist/prejudiced or whatever…"

Perhaps wealthy actors (or those representing them) are attempting to distract the aggrieved—focus their anger toward some non-wealthy group.

This seems like an interesting theory, but when I look at the two ways it may be actuated it seems to fall apart.

Either there is explicit collusion where they meet and discuss how to do these things, or there is implicit collusion where they all act in their own best interests and the results is the same. Neither of these mechanism seems particularly likely to me.

I would be happy to hear some thoughtful explanation of how other people approach this issue

I agree that your two examples don't stand up to scrutiny.

There is historic precedent for blaming immigrants (as an example, or just others, if you like) for one's woes. So on one hand you have well-known "playbooks" that don't require some secret meeting of a cabal.

That aside though, even if actors don't collude, if they're each throwing a lot of things at the wall, they may well all arrive at the same things that seem to "have stuck". It's as though there are universal fears and even prejudices among populations of people.

Hi, this is a well known phenomenon in politics that is much discussed in political science and sociology, and goes by many names (strategic polarization, racial capitalism, split labor market theory, etc, and depending upon how you frame it, it encompasses all politics going back to Plato’s Republic). There are many examples where elites have stoked division amongst the poor (usually along ethnic or religious differences, but any difference can be utilized).

The most famous examples in America were the divisions created between poor white and poor black Americans during Reconstruction and the Jim Crow era to prevent them from forming class solidarity, and then later, the Southern strategy that enabled Nixon and the Republican Party to regain power during and after the Civil Rights era.

If you are unfamiliar with this topic, you can look at wiki articles and blogs like these, and then go deeper by reading academic papers and books on the subject.

https://en.wikipedia.org/wiki/Split_labor_market_theory https://en.wikipedia.org/wiki/Black_Reconstruction_in_Americ... https://en.wikipedia.org/wiki/Southern_strategy https://belonging.berkeley.edu/new-southern-strategy

This is seriously the basis of the manual of populism as mass control tool: identify something attacking their group identity, hang it before their eyes, and they will follow you blindly in every other aspect. Many books have been written about this and nowadays we can see their implementation at work about everywhere.
You can spin many things to sound as racism if you want them to.

My small eu country has in the recent years started importing workers from asian countries, and people are against that... of course it's branded as 'racism' in the media.

The reality is, that some businesses have been having troubles with finding workers to do hard work for minimum wage (which is easily solvable by paying people more and creating better working conditions, but hey, think of the profits), and importing foreign workers means that wages can stay down. We're talking about AI and how we'll all lose jobs,and at the same time, importing new people, and that doesn't compute for many, especially those underpaid who can't negotiate for better options because the government approved new foreign workers in their field.

Then you have the more on-topic problem of importing thousands of "outsiders" into a relatively small city (~300k pop), without building any housing, neither for them, nor for locals, who want to move out their 30+yo "kids" out of their childhood bedrooms, nor for others living a bit further away who'd like to live closer to work. Sure, you can fit 8 "poor foreigners" into a 2-bedroom apartment with 4 bunk beds for 200/month each, and it'll be cheap for them, but for a young couple wating a child, 1600eur for such an apartment is around 1/2 of their combined income, so nope, no apartment and no kids for them, since they have nowehre to put them, and "we need foreigners, because our people are not having enough kids".

Then the third problem is integration... and the government does nothing about it, no language courses, no nothing... the laws say that businesses must use our native language, but in some areas, you can interact even with waiters or shop clercs (so, first line of interaction with customers) who can't speak a word of it.

But hey, it's easier to say "racist people hate foreigners", than to solve the issues.

Because the issues are nearly unsolvable.

Your small EU country probably has a replacement rate of something like 1.5 which means you're heading towards extinction. This puts a crimp on labor and increases wages, and it leaves openings in higher paying jobs which people want. You end up with no one to do naturally lower paying non-specalized labor.

Modern standards of not having 100 people die in a house fire have changed the dynamics of where immigrants live when they moved to a country. New York City, for example, just shoved people nut to butt in the smallest most unsafe places they could make. We don't do that in first world countries now, so something has to give.

It could be 1.7 if we actually built apartments young people could afford.

It could be 1.9 if we had better paid jobs for those without college.

We could have even more if kindergarden didn't cost as much, and if people could afford everything else.

"Back in the time", you'd start work at 18 (or even earlier, most people didn't go to college), settle down with a partner at 20, 21, and what else is there to do than to make a kid? And since it was communism, having a kid meant you'd get a larger apartment. You're 23, 24... another kid, why not, you're still young. Third kid? An even larger apartment!

Now, you need college to get any kind of proper job, so nothing before 25yo, then you need to build up your career, and the age of first kid is going towards 30yo (for mom) or more. That's before accounting for the place to put your kids in. We used to build apartment buildings in communist times, now we don't. And it's not unique to communist areas, even in places like london and paris, low income housing blocks were being built in the 1960s, 1970s and even 80s,... now? Almost nothing.

So, change the law, import as much workers as you've built housing for, give priority to locals with zero houses already, give tax breaks and create assimilation programs (language first) for foreigners. You can't just bring people in, without having (livable) places to put them in and then leave them be. Hey, you big company needing workers... until you pressure your mayor to approve more housing, you won't get them, and mayors listen to "big money". But nope.

I like your take. Do you feel it also a lack of interest in genuine evaluation of hard options?

Not all policy is easy to understand, but I feel (anecdote) that lots of folks don’t want to understand what isn’t an obvious benefit to them, especially if benefits accrue over a longer period.

> Well said. Being told that 'you should be happy without owning' to a party that can't afford to own by another party who is actively scooping up the same resource can feel extremely invalidating.

That's been a long standing element of capitalist propaganda: attempt to distract and invalidate people's real, legitimate complaints about their situations by noting that not even the Kings of old had color TVs and refrigerators.

Who cares if your housing situation is insecure, getting healthcare is challenging, and politically you're dis-empowered? Look at the boob tube and rejoice at your good fortune!