10:762:310 Lecture Notes - Lecture 2: Tax Expenditure, Subprime Lending
Document Summary
A tension between cost of housing and income. Accessability:(open housing may exist but because of social reasons not available to some) Agrarian subsistence(pre-1830s): no formal housing markets, housing constructed by own labor, not purchased. Early industrial(pre-1900): increasing urbanization-new problems, urban rental housing constructed by private entrepreneurs, labor working class who work for capitalists(business owners who have the means of production they have factories and machines but need workers) Fundamental relationship that develops in this phase and is still relevant now. Workers still build and buy but they do it with their wages. Banks not that well established: only a few ppl with a lot of money who would invest it to build housing. Urbanization and early suburbanization(1900-1929): debt-financed housing development. As the working class grows and the middle class/ professional class starts to grow banks are developed. Banks a source of money and finance- finance housing through loans that need to be repaid.