This podcast talks about Peter Thiel’s worries about the housing market. He compares today’s problems to the ideas of an old economist named Henry George. Thiel says the main issue is that there aren’t enough homes being built, and rules called zoning laws make it hard to build more. Because of this, home prices go up much faster than people’s incomes. This makes rich homeowners even richer while making it harder for regular people—especially younger people and middle-class families—to afford a home.
The podcast also explains that there just aren’t enough houses, and mortgage rates (the cost of borrowing money to buy a home) are really high right now. That’s making the problem worse. However, the Federal Reserve (the group that sets interest rates) has started to lower them, which could help a little.
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