{"id":8166,"date":"2016-06-20T08:17:48","date_gmt":"2016-06-20T15:17:48","guid":{"rendered":"https:\/\/therealdaily.com\/?p=8166"},"modified":"2016-06-20T08:17:48","modified_gmt":"2016-06-20T15:17:48","slug":"housing-trilemma-everyone-talking","status":"publish","type":"post","link":"https:\/\/theamericangenius.com\/housing\/homeownership\/housing-trilemma-everyone-talking\/","title":{"rendered":"What is the “housing trilemma” everyone is talking about?"},"content":{"rendered":"

They say two out of three ain\u2019t bad.<\/p>\n

Josh Lehner of the Oregon Office of Economic Analysis has published a blog post proposing a theory called the \u201chousing trilemma.\u201d According to Lehner, every city strives to achieve a high quality of life for its citizens, a strong overall economy, and affordable housing. But according to Lehner, while a city can achieve two out of three of these qualities, it can rarely succeed in all three \u2013 hence, the \u201ctrilemma.\u201d<\/p>\n

Look at it like a Venn diagram<\/h2>\n

To prove his point, Lehner analyzed the largest 100 metropolitan areas, rating them on a number of different criteria.<\/p>\n

His work can viewed as a Venn diagram, showing that only a small handful of cities land in the overlap between high quality of life, strong economy, and housing affordability.<\/p><\/blockquote>\n

For example, Seattle is economically strong and has a high quality of life, but housing prices are startlingly expensive. Portland and San Francisco are much the same. You might have better luck affording housing in Cincinnati, Ohio, which also has a high quality of life, but alas, a floundering economy. Houston, Texas, on the other hand, is both affordable and has a strong economy, but you won\u2019t find its citizens boasting about their quality of life.<\/p>\n

What about the outliers?<\/h2>\n

A few sad cases, such as Detroit, only achieve one of the three parts of the trilemma. Housing in Detroit can be snatched up for record-low prices, but that\u2019s only because the economy is tanking and quality of life is low.<\/p>\n

The only cities that seem to somewhat achieve all aspects of the trilemma are Oklahoma City, Omaha, and Des Moines.<\/p><\/blockquote>\n

It’s all about demand and supply<\/h2>\n

The trilemma makes sense because, as people flock to cities that are known for having economic opportunities and a high quality of life, the increased demand for housing makes rents and property prices spike. On the flip side, towns with few economic opportunities attract fewer new residents, leaving landlords and real estate agents with no choice but to keep price tags diminutive.<\/p>\n

<\/i> Read also: NAR conference: Huge emphasis on student debt a \u201churdle\u201d for housing<\/a><\/strong><\/div>\n

\"bar\"
\nLehner says that popular, thriving cities can become \u201cvictims of their own success\u201d if resident populations get priced out of the housing market. <\/p>\n

He recommends not only increasing construction on housing, but also providing assistance programs for young home owners and renters; only such programs can \u201coffset the premium required to live in a popular place.\u201d<\/p>\n

#HousingTrilemma<\/h3>\n","protected":false},"excerpt":{"rendered":"

The phrase “housing trilemma” is being thrown around after an economist speaks out against housing markets becoming victims of their own success.<\/p>\n","protected":false},"author":337314,"featured_media":7559,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"wds_primary_category":0,"footnotes":"","jetpack_post_was_ever_published":false,"_links_to":"","_links_to_target":""},"categories":[602],"tags":[1070,327,1071,1069],"class_list":["post-8166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-homeownership","tag-dilemma","tag-housing","tag-problem","tag-trilemma"],"jetpack_featured_media_url":"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2016\/04\/stress-sad-mental-health.jpg","jetpack_sharing_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/8166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/users\/337314"}],"replies":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/comments?post=8166"}],"version-history":[{"count":5,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/8166\/revisions"}],"predecessor-version":[{"id":8183,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/8166\/revisions\/8183"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media\/7559"}],"wp:attachment":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media?parent=8166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/categories?post=8166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/tags?post=8166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}