Why Today's Housing Market Is Crazy - Answers from Boston University's Superb Economist, Adam Guren

Professor Kotlikoff chats with renowned economist Adam Guren, a distinguished expert on macroeconomics with a focus on housing and mortgage markets. He brings a wealth of knowledge from his time as a faculty member at one of America's leading universities. His research delves deep into the intersections of housing, personal finance, and macroeconomic policy.
Topics Covered:
• Housing Market Dynamics
• Construction Cost Crisis
• Financial Crisis Retrospective and Future Policies
• Affordable Housing Strategies
The value of this discussion lies in its ability to dissect and clarify the complex engine that drives housing markets, while also offering grounded, forward-looking perspectives that house hunters, investors, and policymakers will find indispensable.
Time Stamps:
• 00:00 Discussion on housing and mortgages in economics.
• 05:03 Unusual housing market driven by low inventory.
• 08:15 Housing construction challenges persist despite labor shortage.
• 11:10 Housing cycle shifts, prices decrease in Iowa.
• 13:04 Builder prefers rentals over condos, avoids conflict.
• 17:00 Studying building approvals and property tax abatement.
• 21:29 Increased supply needed, gradual process ahead. Zoning reform.
• 25:38 High office building vacancies may trigger financial crisis.
• 28:18 Sacrifice space for better job opportunities, investment.
• 33:17 Rising mortgage rates make current period painful.
• 34:21 Prepayments on mortgage-backed securities fell unexpectedly.
• 39:57 Financial Crisis Inquiry Commission report reveals causes.
• 42:12 Credit expansion broad, not just subprime growth.
• 47:13 Discussion of multiple equilibria in financial crisis.
• 50:10 Stock market vs real estate wealth impact.
• 53:31 Research improves understanding of mortgage modification.
This conversation offers valuable insights as the discussion navigates through the intricacies of today's housing challenges
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Economic Matters - The podcast is hosted by Laurence Kotlikoff and moderated by Alex Kotlikoff.
Laurence Kotlikoff is a Boston University Economist, a NY Times Best Selling Author, President of maxifi.com, and Author of Money Magic.
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