How Wall Street Plans to Fix the Housing Crisis | Bullish
Building affordable homes in the US is very difficult right now, even harder than building luxury homes. The country faces a huge shortage of homes, with major cities like New York and Miami hit hardest. Homeownership is becoming too expensive for many, with rising prices and high mortgage rates, while rents are also increasing much faster than people's salaries. This problem is partly due to slower construction after the 2008 financial crisis, strict building rules, higher material costs, and a lack of workers. Big financial companies, including those on Wall Street, have become major players in the housing market, buying up homes to rent out. Some people believe these companies worsen the problem by increasing prices, while others, like investor Don Mullen, argue they help by providing rental options in good areas for those who can't afford to buy. Another expert, Margaret Anadu, focuses on preserving and creating affordable housing through partnerships between private companies and the government. She emphasizes that stable housing is crucial, whether through owning or renting, and that private investment is essential to solve the housing crisis because governments alone cannot fund the massive need for new homes.
Key Vocabulary
To assess or determine the amount, capacity, or degree of something, often by using a measuring device or by making a judgment based on available information.
Examples:
- The project manager needed to gauge the team's morale before implementing the new policy.
- It's difficult to gauge the success of a new product solely based on initial sales figures.
- The expert could gauge the antique's value just by looking at its craftsmanship.
To give new life, energy, or vigor to something, often making it more active, healthy, or successful.
Examples:
- The new community center was designed to revitalize the downtown area.
- The company introduced a bold marketing campaign to revitalize its brand image.
- Adding fresh paint and modern furniture can help revitalize an old room.
In the context of events or situations, it means developing or forming, often implying that something significant, and sometimes troubling, is about to happen.
Examples:
- A sense of unease was brewing among the employees after the unexpected announcement.
- The long silence indicated that a storm was brewing between the two opposing factions.
- Rumors of a major acquisition had been brewing for weeks before the official announcement.
A very large number, specifically a million millions (1,000,000,000,000). In a financial context, it refers to an extremely large sum of money.
Examples:
- The national debt had reached several trillions of dollars, a staggering amount.
- Investing in infrastructure projects could cost trillions, but the long-term benefits would be immense.
- The global economy moves trillions of dollars across borders every single day.
Official papers or receipts that entitle the holder to a specific service, discount, or payment, often used in government programs to provide assistance for housing or other necessities.
Examples:
- The city offered housing vouchers to low-income families to help them secure stable accommodation.
- Many students received book vouchers to offset the high cost of textbooks.
- The travel agency provided meal vouchers that could be used at various local restaurants.
The act of adapting something for use in a different way than its original intention, often to make it more useful or relevant.
Examples:
- The old factory was repurposed into a vibrant art gallery and community space.
- Creative designers found success in repurposing discarded materials into fashionable accessories.
- The software team was tasked with repurposing existing code for a new application, saving development time.
Having knowledge or being aware of something, often implying a conscious understanding of facts or circumstances.
Examples:
- The CEO was cognizant of the challenges facing the company in the upcoming quarter.
- It is important for all team members to be cognizant of the project deadlines.
- She became cognizant of the subtle changes in her neighborhood after living there for years.
Increased very rapidly and to a very high level, often used to describe prices, rates, or figures.
Examples:
- After the product endorsement by a celebrity, sales skyrocketed overnight.
- The cost of raw materials skyrocketed, impacting the company's profit margins.
- Interest in the new online course skyrocketed, leading to a long waiting list.
Preserved in memory or made famous for a long time, often through art, literature, or historical accounts.
Examples:
- The brave actions of the firefighters were immortalized in a monument in the town square.
- The author's vivid descriptions immortalized the beauty of the untouched wilderness.
- His groundbreaking scientific discovery immortalized his name in the annals of history.
In a way that shows good judgment and care, being accountable for one's actions, and considering the consequences.
Examples:
- Businesses are expected to manage their resources responsibly to ensure long-term sustainability.
- It's crucial to invest responsibly, understanding both the risks and potential rewards.
- Parents teach their children to handle their toys responsibly to prevent damage.
Serving to determine or decide something; having the power to settle a question or influence an outcome.
Examples:
- The final exam was the determinative factor in whether she would pass the course.
- His early experiences proved determinative in shaping his career choices.
- The judge's ruling was determinative for the future of the small company.
Referring to a type of housing that contains multiple separate housing units within one building or several buildings on a single property, such as apartment complexes or duplexes.
Examples:
- The city council approved the construction of a new multifamily development to address housing shortages.
- Investing in multifamily properties can provide a steady stream of rental income.
- The architect specialized in designing efficient and aesthetically pleasing multifamily residences.
Treated as more important than other things, or arranged in order of importance.
Examples:
- The company prioritized customer satisfaction above all other business goals.
- She prioritized her health by making time for exercise and healthy eating every day.
- During the crisis, the government prioritized providing essential services to its citizens.
To make something seem more pleasant or acceptable than it really is, often by hiding or downplaying negative aspects.
Examples:
- The manager decided not to sugarcoat the difficult truth about the company's financial situation.
- It's important to present feedback honestly, without trying to sugarcoat the areas that need improvement.
- He always tries to sugarcoat bad news, but his colleagues prefer direct communication.
The adverse side effects or results of a situation, action, or event, often referring to unforeseen or negative consequences.
Examples:
- The political fallout from the scandal led to several resignations.
- The economic fallout of the factory closure was felt throughout the small town.
- Scientists are still studying the long-term environmental fallout from the oil spill.
Reduced to a lower rank, level, or status, often referring to a credit rating, a job position, or the quality of something.
Examples:
- The credit rating agency downgraded the company's bonds due to its increasing debt.
- After a series of poor performances, the team was downgraded to a lower league.
- The software was downgraded to an older version because of persistent bugs in the new release.
Of crucial importance in relation to the development or success of something else; central or critical.
Examples:
- The discovery of penicillin was a pivotal moment in medical history.
- Her decision to join the startup proved to be pivotal for her career trajectory.
- The final negotiation meeting was pivotal in securing the international trade deal.
To happen or occur afterward or as a result, often as a consequence of a previous event or action.
Examples:
- If the two rival teams meet in the championship, a fierce competition is sure to ensue.
- A period of confusion will likely ensue if the instructions are not clearly communicated.
- When the power went out, a moment of silence ensued before people started to react.
Characteristic of a person who is overly intellectual, obsessive about a particular niche interest, and often socially awkward, or simply someone who is intelligent and enthusiastic about specific subjects.
Examples:
- He embraced his nerdy side by spending weekends building intricate model airplanes.
- Her nerdy passion for ancient languages made her a valuable asset to the historical research team.
- They bonded over their shared nerdy love for obscure science fiction films.
A continuous sequence in which adjacent elements are not perceptibly different from each other, but the extremes are quite distinct, often representing a range of possibilities or qualities.
Examples:
- The spectrum of human emotions exists on a broad continuum, from joy to sorrow.
- Quality control measures ensure that product standards remain consistent across a manufacturing continuum.
- The different stages of project development form a continuum, each flowing into the next.