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Capitalisn't

Did NIMBYs Kill the American Dream?, with Yoni Appelbaum

Capitalisn't

University of Chicago Podcast Network

Stigler Center, Chicago Booth, Socialism, Antitrust, University Of Chicago Podcast Network, Growth, 087667, Policy, Monopoly, Professors, Distortion, Research, Competition, Capitalisnt, Inequality, Promarket, Politics, Policymaking, Special Interest, Economics, Efficiency, Regulations, Chicago, Business, Markets, University Of Chicago, Kate Waldock, Capitalism, Friction, Bethany Mclean, Government, Macroeconomics, News, Education, Waldock, Georgetown, Microeconomics, Luigi Zingales, Zingales, Finance, Ucpn

4.5 • 584 Ratings

🗓️ 20 February 2025

⏱️ 45 minutes

🧾️ Download transcript

Summary

“Homeownership is the American Dream.” This saying is so ingrained in our zeitgeist that most Americans don't even pause to question it. However, according to the Black Knights Home Price Index, the average US home price increased nearly 80% from April 2015 to April 2023. Census data reveals that the median household income only increased by 4% during this period. Homeownership has thus become increasingly out of reach, especially for young professionals. So, how did the American Dream become an American nightmare? In his brand new book, “Stuck: How the Privileged in the Propertied Broke the Engine of American Opportunity,” The Atlantic’s Deputy Editor Yoni Appelbaum offers a contrarian view, arguing that the crisis in American homeownership isn’t actually about cost—it’s about mobility. There are many places in America where housing remains affordable and even dirt cheap. The problem is that those affordable options are in less desirable locations, with fewer opportunities for high-quality jobs, education, and health care. Thus, young professionals continue to migrate to communities where opportunities are bountiful, but housing is not. Appelbaum joins Bethany and Luigi to discuss how Americans got “stuck.” Why does mobility matter so much? What are the implications of reduced mobility for Americans’ faith in capitalism and the belief that our country is still the land of opportunity? If treating a home as an investment—which many of us do—means less mobility, is being “stuck” so wrong for society? Together, the three of them unpack this entangled question of mobility, homeownership, and what it means for the reformulation of the American Dream.

Transcript

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0:00.0

The NIMBs are trying to kill the American dream, but I'm not willing to go up the fight just yet.

0:05.8

I'm Bethany McLean.

0:07.4

Did you ever have a moment of doubt about capitalism and whether greed's a good idea?

0:12.7

And I'm Luigi Zengales.

0:14.1

We have socialism for the very rich, rugged individualism for the poor.

0:19.5

And this is Capital Isn't, a podcast about what is working in capitalism.

0:23.5

First of all, tell me, is there some society you know that doesn't run on greed?

0:28.0

And most importantly, what isn't?

0:30.0

We ought to do better by the people that get left behind.

0:32.9

I don't think we shouldn't kill the capital system in the process.

0:36.5

The saying is so ingrained that most of us don't even stop to question it.

0:40.9

Homeownership is the American dream.

0:43.7

In fact, according to a 2003 survey, the vast majority of Americans believe owning a home is a

0:49.3

greater achievement than raising a family, getting a college degree, or having a career.

0:53.9

In the global financial crisis, home ownership, or at least housing, became the American

0:59.3

nightmare, not the American dream, but the American nightmare. You think that the housing

1:03.5

crash will have made housing affordable. Instead, it has become increasingly unaffordable.

1:09.8

According to the Black Knights's Home Price Index,

1:13.2

the average seasonally adjusted U.S. home price increased nearly 80% from April 2015 to April

1:20.7

2023. Wow, 80%. There are lots of reasons for this, but the essence is that supply hasn't

1:26.5

kept up with demand.

1:27.7

Freddie Mac estimates it would take another 3.8 million units just to adequately house our

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