This Odd Lots podcast episode interviews Kevin Erdmann, an expert on housing markets, to discuss the ongoing housing shortage in the US. The conversation begins with a review of past housing crises and explores Erdmann's theory that post-2008 lending restrictions, intended to prevent another bubble, are a major cause of the current shortage. Erdmann argues that these restrictions have disproportionately impacted lower-income homebuyers, reducing housing supply and driving up prices. He suggests that loosening lending standards, while addressing local zoning regulations, could significantly alleviate the problem. The discussion concludes with a consideration of the potential impact of Fannie Mae and Freddie Mac privatization on credit standards and the growing build-to-rent market.
