Why is the rent so high? Final review

What is Capitalism?

An economic system based on private property, market competition, and profit motives.

Define Neoliberalism.

A modern economic philosophy advocating free markets, deregulation, privatization, and reduced government spending.

What does Classical Liberalism emphasize?

Individual freedom, limited government, and free markets.

What does Egalitarian Liberalism combine?

Individual freedoms with policies aimed at reducing economic and social inequalities.

What is the Keynesian State/Social Welfare State?

Advocates for active government intervention to manage the economy and provide safety nets like public housing, healthcare, and unemployment benefits.

What is the Roll-Back aspect of Neoliberal Policy?

Reduction of government interventions, such as cutting public housing programs.

What does Roll-Out refer to in Neoliberal Policy?

The introduction of market-based solutions, like housing vouchers and privatization of social services.

How does Clarissa’s struggle illustrate neoliberal policies?

It shows how neoliberal policies create barriers for low-income individuals amid insufficient social safety nets.

What is the HOPE VI Program?

A federal initiative that replaces decaying public housing with mixed-income developments, criticized for displacing original residents.

What is the difference between Public Housing and Housing Network?

Public Housing is government-led, while Housing Network is a collaborative, decentralized approach involving nonprofits and private developers.

What contributes to the political support for the Housing Network?

Public-private partnerships and perceived efficiency.

What is LIHTC?

Low-Income Housing Tax Credit, a major federal program incentivizing private developers to build affordable housing.

What are Section 8 Vouchers?

Assistance for low-income families to afford private-market rentals, but they face challenges like long waiting lists.

List the inherent virtues of property taxes.

Transparency, simplicity, and difficulty to evade.

How does property taxation affect Black households?

They often face overassessment for taxes but underappraisal in sales, exacerbating wealth disparities.

What does progressivity in federal income taxes mean?

Tax rates increase with income, ensuring higher earners pay a larger share.

What is a marginal tax rate?

The tax rate applied to the last dollar of income earned.

What is the Mortgage Interest Deduction (MID)?

Allows homeowners to deduct mortgage interest payments from taxable income, disproportionately benefiting wealthier homeowners.

What are critiques of the Mortgage Interest Deduction?

Fails to significantly promote homeownership; benefits wealthier households; ignores renters entirely.

What is the Capital Gains Exclusion?

Allows homeowners to exclude significant profits from home sales from taxation.

What does the Fair Housing Act of 1968 prohibit?

Housing discrimination based on race, religion, national origin, or sex.

What is redlining?

The practice of denying mortgages or insurance based on racial composition, perpetuating segregation.

What is the legacy of racial segregation as a deliberate policy?

Government-enacted zoning laws, mortgage restrictions, and public housing placement that institutionalized segregation.

What persistence of segregation was observed post-Fair Housing Act?

Continued use of municipal boundaries, exclusionary zoning, and misallocation of subsidies.

What was the Great Migration?

A movement of Black Americans from the rural South to urban areas for better opportunities during WWI and WWII.

How were predominantly Black neighborhoods maintained?

Through racial covenants, mob violence, freeway placements, and discriminatory lending practices.

What is 'The Black Tax'?

The devaluation of homes in Black-majority areas that reduces wealth-building opportunities.

What issues arise from extreme car dependence?

Housing costs increase due to urban parking requirements and car ownership consuming income that could be used for housing.

How do freeway and transit expansions differ in decision-making?

Freeway expansions are state-led with no public vote, while transit requires public votes and federal grants.

What is induced demand in relation to freeways?

Expanding freeways often worsens congestion by encouraging more driving.

What is the relationship between vehicle speed and pedestrian danger?

Fatality risk for pedestrians increases exponentially with vehicle speed.

Who is most at risk for pedestrian deaths?

Elders, low-income individuals, Black and Hispanic people, suburban residents, and those in Sunbelt states.

What is the trend of suburbanization of poverty?

Poverty increasingly shifts to car-dependent suburbs, worsening safety risks due to inadequate infrastructure.

List some solutions to rising pedestrian deaths.

Automated traffic enforcement, road diets, and Vision Zero initiatives.

How does sea level rise affect coastal communities?

It threatens property and infrastructure, necessitating difficult adaptation choices.

What is short-termism in climate decision-making?

Politicians focus on immediate gains, delaying necessary long-term investments against climate risks.

What is a wildland urban interface (WUI)?

Areas where development meets wilderness, susceptible to environmental risks like wildfires.

What does environmental justice aim to address?

It aims to correct the unequal exposure of marginalized populations to environmental hazards.

What is the ripple effect in housing?

Expensive housing markets force people to risk-prone areas, increasing vulnerability to natural disasters.

What is 'The Housing Theory of Everything'?

A theory suggesting housing scarcity underlies various societal issues, including economic inequality and climate vulnerability.

What is the Median Multiple in housing market indicators?

A measure of affordability, calculated as median house price divided by median household income.

What defines a household as 'rent burdened'?

If a household spends more than 30% of its income on rent.

What constitutes the homeless population?

The number of people experiencing homelessness, indicative of housing market failures.

What are building codes?

Standards for safety, environmental, and efficiency in design and construction.

What are some key demographic trends in the past 100 years?

Shrinking household sizes, rise of single-person households, and increased divorce rates.

What drives demographic changes?

Individualism, feminism, acknowledgment of diverse family structures, and urbanization.

What are agglomeration economies?

Economic benefits arising when firms and people cluster together, increasing housing demand.

What is the structure of the modern homebuilding industry?

Dominated by large developers and construction firms, with complex supply chains and regulatory compliance.

What challenges are associated with factory production of housing in the US?

High transportation costs, lack of economies of scale, and regulatory barriers.

What is Baumol’s Cost Disease?

It explains rising costs in labor-intensive sectors due to limited productivity gains.

What comprises the market cycle in housing?

Phases of expansion, peak, contraction, and recovery influenced by economic conditions.

What impact did the Great Recession have on the homebuilding industry?

It caused a sharp decline in homebuilding and massive layoffs, with a slow recovery afterwards.

What workforce trends affect the construction industry?

Aging workforce, labor shortages, skill gaps, and high injury rates.

What characterizes the low-end rental housing market in the US?

Aging housing stock with limited investment, leading to substandard living conditions.

What issues define the social safety net for low-income renters in the US?

Limited public housing, insufficient subsidies, and long waiting lists.

What are informal homestead subdivisions?

Unregulated developments lacking basic infrastructure, found in low-cost areas.

What is seller financing in informal homestead subdivisions?

Buyers, lacking traditional loans, rely on seller financing, often with high interest rates.

What vulnerabilities do mobile home park homeowners face?

While they own their homes, they are at risk of rent hikes and eviction due to land renting.