How to misallocate societal resources

1. Perpetuate outdated notions about the desirability of single family homes; 2. Impose incredibly restrictive zoning in areas close to jobs, ensuring that homes there will remain very expensive; 3. Provide large, implicit subsidies to drivers, specifically by failing to price-in the societal cost of greenhouse gas emissions; 4. Under-invest in mass transit; 5. Allow exurban … Continue reading “How to misallocate societal resources”

Some thoughts on the mass ownership of homes by investment funds

Yahoo Finance had a somewhat interesting article yesterday regarding the mass ownership of homes as rentals by big investment funds. In case you haven’t been following this issue: Tons of homeowners lost their homes during the Great Recession. Because there were so many vacant homes, prices dropped really far, particularly in certain western and southern … Continue reading “Some thoughts on the mass ownership of homes by investment funds”

Is the coming apartment glut going to hurt NE LA rents?

A lot of savvy investors are aware that there is a tidal wave of apartment construction coming towards us. In Hollywood, Glendale and Downtown, there are literally thousands of apartments in various stages of permitting, construction and lease-up. As an investor buying up buildings in gentrifying parts of LA, all of which are near the … Continue reading “Is the coming apartment glut going to hurt NE LA rents?”

Surprise: An implicit development tax!

Recently, the plan checkers at Department of Building and Safety were issued the following edict: The only plans that can be approved over the counter are for additions of less than 500 sq ft and renovation / remodeling of single story buildings. Anything else goes behind the counter. What does “going behind the counter” mean? … Continue reading “Surprise: An implicit development tax!”