Posted by
Andrews on Friday, September 19, 2008 4:35:02 PM
I was amused to read
an AP story about "tent cities" springing up in various cities. Of course, the AP,
as is mandatory, blamed them on the horrible Bush economy. However, I have two alternate thoughts.
First, is it not possible that these cities, many of which implemented "smart growth" policies, restricting the number of new buildings which could be constructed, thus driving up both home prices and rents, could have driven these people out of the bottom end of the housing market?
Second, and more pertinent, is it not possible that the tripling of housing costs in the last five to seven years, with the concomitant rise in rents, has made it hard for those with marginal employment to find anywhere to live?
If either of those is the case, then is it not also true that the housing "crisis" so many lament, the end of the housing boom and a long postponed drop in prices, may actually cause a decline in rents and allow these people to once again find permanent shelter?
In other words, is it not possible that one supposed "crisis" may be the cure for another?