Category: Housing bust

A Housing Recovery That Leaves the Middle Class on the Sidelines

ROBERT BRIDGES, assistant professor clinical finance, business economics, USC’s Marshall School of Business.

This op-ed originally appeared at Forbes.

It would seem that a government seeking to display a true populist streak by helping its citizens buy houses would do so in a way to ensure prices as low as possible. For those who are not yet homeowners, how is it populism when recovery makes houses more expensive rather than more affordable?

For some time now, demand for houses has been artificially boosted by federal and state tax policies, rising governmental involvement in residential-debt financing, and persistently low interest rates orchestrated by the Federal Reserve. This intensified demand has not been relieved by sufficient new supply of houses, resulting in intractable upward pricing pressure that has put home-ownership beyond the reach of growing numbers of moderate-income buyers. Future housing markets are likely to be increasingly vulnerable to destructive price swings if credit-fueled demand and no-growth sentiment continue to flourish.

California Needs a Politics Rooted in 2012, Not 1978

DOWELL MYERS, demographer and planning professor, Price School of Public Policy.

This op-ed originally appeared in the Los Angeles Times.

At the root of California’s dysfunctional politics lie some old ideas about who we are as a state. Demographics have been more volatile here than in other states, and many Californians older than 55, who make up roughly 46% of state voters, don’t want to pay for changes they never welcomed. The tragedy is that they are battling problems that have largely dissipated. The outlook for California going forward from 2012 is very different from what it was two decades ago.

Take population growth. The 1980s brought an unprecedented growth spurt for the state, with population increasing by some 6.1 million people. This far exceeded the population growth of 3.7 million people in the 1970s and 4.3 million in the 1960s.

Has Proposition 13 Lost Its Relevance?

DOWELL MYERS, demographer and professor of planning, USC’s Price School of Public Policy.

This op-ed originally appeared in the Sacramento Bee.

Proposition 13 is widely regarded as the third rail in state politics: Touch it and you’re politically dead. It has earned that sacrosanct status because it solved some urgent problems for California homeowners. But that was a generation ago, a different time with different problems. As we face the challenge of reviving the state’s housing market and finding a reliable revenue source for freeways, schools and other public services, we should consider how Proposition 13 should serve us in the future.