Hello World!

Lets begin by taking a step back to 1949. You are probably wondering why we would do that? Well, in 1949, the United States passed the American Housing Act. The 1949 Housing Act was one of the largest national housing policies in the United States. It expanded the federal governments’ role in mortgage insurance, urban renewal, and the construction of public housing. Its objective was to create a “decent home and a suitable living environment for every American family”. I’m bringing this up because it’s 2012 and this goal is far from being met. Millions of households are living in dwellings above their means or have no kind of shelter at all. This is due to the fact that housing costs way more than it used to. In the 1960s, food constituted for one-third of a household’s budget. Today, food constitutes one-seventh of a family’s budget. The costs of housing, healthcare, and childcare have all risen disproportionately. Its crazy how drastically things can change in a matter of 50 years. For the purposes of my blog and my overall sanity, I will only be focusing on our housing crisis. Like that’s an easy task!

            So, you are probably wondering who I am and how am I qualified to talk about the housing crisis? First off, lets be clear—I’m not claiming to be an expert of any kind. However I do have an invested interest in the housing market. Growing up, my dad would always talk about the housing problems in this country. At the time, I had no clue what he was talking about! Now that I have grown up, I understand where he was coming from. I am currently majoring in public policy with an emphasis in real estate development. Now, you are probably wondering why you should listen to a college kid? Well, I suppose you don’t have to. But if you want to read or learn more about issues pertaining to housing, then you have come to the right blog. Housing is a topic that I find myself thinking about and researching often. My blog will focus on how we got ourselves in this current predicament and how we can improve the overall housing problems in the United States.

            I will examine and critique current housing policies and programs in order to get a better understanding of how things can be fixed. Affordable housing has always been a problem. A household should spend no more than 30% of their annual income on housing. Public housing, HUD section 8, inclusionary zoning, and rent control are all housing programs that are meant to increase affordable housing options. They all have good aspects and intentions, but they all have shortcomings. As a result, slum housing and homelessness continue to exist.

            With the burst of the housing bubble and the collapse of the sub-prime mortgage system, our housing crisis has become even worse. Millions of Americans cannot pay off their mortgages. Foreclosure rates continue to rise while home values continue to depreciate. Home construction is at an all time low.

            Even though there are many problems pertaining to housing, I am optimistic that things will improve with time. We just have to be patient! I look forward to blogging about these issues and hopefully learning more in the process.