The Great Housing Trap (Part 2)

Policy, Profit, and Zoning pushed the American Home off the Market

We discussed in Part 1 why ownership, once the bedrock of American wealth, is slowly slipping away from our grasp. We used housing as the clearest example. Once affordable at 4x the average annual income, but is now unaffordable for most of us. In Part 2, we're delving in. This is not inflation or supply chain talk. This is structural. A policy created system where housing isn't for living anymore, but for holding, flipping, and extracting equity.

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Houses Built to Appreciate, Not Endure

Homes aren't built like they were 50 years ago; with hardwood framing, thick plaster walls, and tile or slate roofing. Today, they’re lighter, quicker to build, and far more expensive. Why? They are optimized for valuation, not for durability over long periods of time. The materials used, the size of the floor plan, and even the appearance of the surrounding neighborhood are all chosen with one purpose: price per square foot optimization.

Builders have discovered that it’s short term appraised value, not long term livability, that drives sales. As long as the house is marketed as spacious with big rooms and "modern”, it doesn't matter that it's constructed with flimsy drywall and drafty windows that wear down fast and hike utility bills. Add pressure to conserve labor and materials, and you have a situation where it's advantageous to construct throwaway houses that appear costly rather than plain houses that last.

This design philosophy increases prices. Not just because the houses are more expensive to buy, but because they are more costly to maintain. Buyers do not gain equity. They’re buying illusion.