Yes, per-adult, multi-generation family homes are even more cost-effective than for couples (even accounting for smaller pensions compared to salaries), and both are more cost-effective compared to singles.
Apart from growing prices, my experience (not in Canada though) is that living spaces are growing too, as we are not satisfied to live in the same cramped 20m2 studio as singles were 30 or 50 years ago.
This fact makes the high levels of singledom in recent years even more remarkable and concerning. Even with strong economic incentives, a large fraction of people really don't want to pair up.
All the justified complains about housing prices aside, I want to focus on this part
"Some people are fine with getting a roommate, but what if you’re not?[...]Usually, people get to a certain stage of life, and they like their independence.”"
No usually it's the other way around. You get to a certain stage of life, your household size grows. There's exogenous factors like lack of construction but all other things being equal, housing used to be more affordable because the entire nation didn't consist of single person households. Multi-generational homes and large families were the norm because it saves resources. People who decide to want to live independently are going to take a financial hit.
If you're not interested in a traditional family I'd strongly suggest societies think about cooperative housing collectively and having a flat mate or two individually.
Adam Smith observed in his "wealth of the nations" that when people get more money they almost always spend it on better housing. There is a limit to how large a house people will want before they decide not to (many rich are living in mansions smaller than they could afford - and in some cases the size of their mansion seems to be set because they want to be the biggest not because they want/use the space), but I don't know where that limit is.
The book the two income trap describes this. It talks about better schools etc but if you are competing with people that have two incomes as an individual you better have two incomes worth of salary.
The issues starts to arise that people with two income households are more likely to lose one of those jobs and that puts a lot of pressure on the finances if you need both jobs for your house payment.
Travelling isn't, either, found that the ward way during the last few years. If anyone has a good-ish solution for how they've handled that, feel free to share.
It's frustrating that the problem is acknowledged (Housing prices are too high) but the solution seems to evade the author and nearly everyone involved in setting housing policy; not because of a lack of rent control.
Housing is too expensive because it's illegal to build enough of it.
No, multi-generation households will not save us. We should not make it impossible for young people to move to cities where high-paying jobs are, or force anyone to stay in abusive homes because we have made it impossible to live on your own.
Housing is too expensive because it is an investment, full stop.
I live in Tokyo, famed for its "housing affordability".
Guess what, it's completely unaffordable for normal people now, because of people purchasing homes for investment purposes. Rent is still affordable but has a rapid upward trend as well.
Ironically, the Argument just a few months ago ran a long and well-researched piece on how the housing market isn't for parents --- in many rental markets, there are policies that lock out parents, particularly through permitting processes that favor developments for seniors while icing out any other developments.
Meanwhile, a really important dynamic to keep in mind is that in most inner-ring suburbs in the US, the primary driver of home values (and of property taxes) are school systems. If you don't actively enact policies that work against the dynamic, you get trapped in a spiral of increasing prices, in part because parents can bid up prices and suffer them only for the span of time their kids are in school --- "renting the schools".
Where I live you're pretty much screwed if you're single, or a family that needs extra bedrooms. Extra screwed if you're a single parent, obviously. People spending 50%-60% of their net pay on rent alone, basically stuck renting, because housing prices have increased 10% annually for almost 15 years.
It is also a town that has seen explosive growth in tourism, so the new trend is that people are only willing to rent 6-8 months to normal people. Rest of the year they'll rent out their unit on airbnb, where they can earn 3-5 times more.
The housing affordability crisis only exists in places that are very desirable, which is to say if you only build homes, you won't solve the problem, because most people don't want to live in a huge belt of suburbia. You have to build 15 minute cities, and you have to connect them with clean, reliable, safe public transit.
This is a huge economic opportunity for exactly the people we've been shafting: build us millions of zero emissions buildings and infra. I have no idea why Democrats aren't making this the front page of their platform.
19 comments
[ 1.8 ms ] story [ 45.0 ms ] threadYes, per-adult, multi-generation family homes are even more cost-effective than for couples (even accounting for smaller pensions compared to salaries), and both are more cost-effective compared to singles.
Apart from growing prices, my experience (not in Canada though) is that living spaces are growing too, as we are not satisfied to live in the same cramped 20m2 studio as singles were 30 or 50 years ago.
"Some people are fine with getting a roommate, but what if you’re not?[...]Usually, people get to a certain stage of life, and they like their independence.”"
No usually it's the other way around. You get to a certain stage of life, your household size grows. There's exogenous factors like lack of construction but all other things being equal, housing used to be more affordable because the entire nation didn't consist of single person households. Multi-generational homes and large families were the norm because it saves resources. People who decide to want to live independently are going to take a financial hit.
If you're not interested in a traditional family I'd strongly suggest societies think about cooperative housing collectively and having a flat mate or two individually.
The issues starts to arise that people with two income households are more likely to lose one of those jobs and that puts a lot of pressure on the finances if you need both jobs for your house payment.
And why shouldn't it be easier to own property with the resources of two people behind the purchase?
Housing is too expensive because it's illegal to build enough of it.
No, multi-generation households will not save us. We should not make it impossible for young people to move to cities where high-paying jobs are, or force anyone to stay in abusive homes because we have made it impossible to live on your own.
I live in Tokyo, famed for its "housing affordability".
Guess what, it's completely unaffordable for normal people now, because of people purchasing homes for investment purposes. Rent is still affordable but has a rapid upward trend as well.
OK. Why is it an investment?
When I moved to SF when I was 25, I sure could not afford a house or even a condo.
But I sure could have bought a house in the Tahoe area.
Would the commute suck? Yes. Could I have made a go of it? Slept in my car during the week?
I sure would have built a lot of equity, plus you'd have a cool place to go on weekends and invite your friends.
https://www.theargumentmag.com/p/no-country-for-young-famili...
Meanwhile, a really important dynamic to keep in mind is that in most inner-ring suburbs in the US, the primary driver of home values (and of property taxes) are school systems. If you don't actively enact policies that work against the dynamic, you get trapped in a spiral of increasing prices, in part because parents can bid up prices and suffer them only for the span of time their kids are in school --- "renting the schools".
It is also a town that has seen explosive growth in tourism, so the new trend is that people are only willing to rent 6-8 months to normal people. Rest of the year they'll rent out their unit on airbnb, where they can earn 3-5 times more.
Paraphrasing madd scientist, Dr. Frankenfurter, from the Rocky Horror Picture Show:
I didn't make it, for you!
This is a huge economic opportunity for exactly the people we've been shafting: build us millions of zero emissions buildings and infra. I have no idea why Democrats aren't making this the front page of their platform.