Housing affordability is a key issue facing many Americans. This presentation looks at different areas of policy as it relates to affordability.

1. USA
HOUSING
MARKET
Paul Young CPA CGA
August 23, 2020

2. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Financial Solutions
• SME – Business Process Change
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. AGENDA
• Housing Starts
• 2009 Financial Crisis
• Household Debt to GDP
• Household Debt to Income Ratio by State
• Household Debt to disposable income
• COVID19 / Household Finances
• Average Housing Prices
• Urban Planning
• Technology
• What’s next

4. USA HOUSING
STARTS
(ANNUALIZED)
Source -
https://tradingeconomics.com/
united-states/housing-starts

5. 2009
FINANCIAL
CRISIS
• Clinton mortgage reforms – “Affordable housing goals of
Clinton had an influence on 2009 financial meltdown -
https://www.wsj.com/articles/the-clintonera-roots-of-the-
financial-crisis-1376348141
• 2009 Financial Crisis-” The foundation of the global financial
crisis was built on the back of the housing market bubble that
began to form in 2007. Banks and lending institutions offered
low interest rates on mortgages and encouraged many
homeowners to take out loans that they couldn’t afford. With
all the mortgages flooding in, lenders created new financial
instruments called mortgage-backed securities (MBS), which
were essentially mortgages bundled together that could then
be sold as securities with minimal risk load due to the fact that
they were backed by credit default swaps (CDS). Lenders
could then easily pass along the mortgages – and all the risk.
Outdated regulations that weren’t rigorously enforced allowed
lenders to get sloppy with underwriting, meaning the actual
value of the securities couldn’t be established or guaranteed. ”
-
https://corporatefinanceinstitute.com/resources/knowledge/fi
nance/2008-2009-global-financial-crisis/

6. HOUSEHOLD
DEBT TO GDP
Source -
https://www.statista.com/statist
ics/248283/household-debt-
ratio-to-gdp-in-the-united-
states/

7. HOUSEHOLD
DEBT
Source -
https://www.statista.com/chart/
19955/household-debt-
balance-in-the-united-states/

8. HOUSEHOLD DEBT TO INCOME RATIO
Source -
https://www.federalreserve.gov/releases/z1/dataviz/household_debt/state/map/#year:2019

9. DEBT TO
DISPOSABLE
INCOME
Source -
https://www.marketwatch.com/
story/dont-believe-fake-news-
americans-debt-burden-is-
actually-at-the-lowest-level-in-
years-2019-08-15

10. COVID19
• Disposable income has been impacted by COVID19 - https://www.bea.gov/news/2020/personal-income-and-
outlays-june-2020-and-annual-update
• Credit debt has not risen much during the pandemic - https://www.forbes.com/sites/advisor/2020/07/17/credit-
card-debt-is-down-during-covid-19-heres-why/#340f1cc773a1

11. AVERAGE
HOUSING
PRICES
Source -
https://www.fool.com/the-
ascent/research/average-
house-price-state/

12. URBAN
PLANNING
• The problem from the get-go has been with proper
urban planning including rural vs urban strategy!
• It is time for all levels government to look at
innovator solutions when it comes to building
affordable housing
• https://www.slideshare.net/paulyoungcga/urban-
and-rural-planning-whats-next
• Building codes need to revamp to deal with 3-D
housing -
https://www.forbes.com/sites/pikeresearch/2019/1
1/20/3d-printed-homes-quietly-gain-
traction/#74899cc763bd
• All levels government need to look at proper land
management -
https://www.slideshare.net/paulyoungcga/why-do-
politicians-play-games-with-the-environment

13. TECHNOLOGY
AND
HOUSING
• AI and at risk for homelessness -
https://www.cbc.ca/news/canada/london/artifici
al-intelligence-london-1.5684788
• AI and cost control -
https://www.enr.com/events/880-ai-how-it-s-
transforming-project-management-for-the-
better
• Smart construction -
https://www.weforum.org/agenda/2020/08/here
-s-how-smart-construction-could-transform-
home-building-after-covid-19/
• AI and housing - https://www.urban.org/urban-
wire/four-ways-technology-addressing-housing-
affordability-crisis

14. WHAT’S
NEXT
• Federal government for the USA along with state and
local government need to work together to reshape
economic policies
https://www.slideshare.net/paulyoungcga/2020-united-states-
election-policy-analysis
• All levels of government need to revisit policies related to value
for money/program spending and tax fairness
https://www.slideshare.net/paulyoungcga/fiscal-management-
cycle-public-sector-united-states
• There needs to be better balance between the environment and
the economy including complete review of policies related to
climate and the green economy -
https://www.slideshare.net/paulyoungcga/green-economy-clean-
technology-whats-next or
https://www.latimes.com/environment/story/2020-08-17/biden-
trump-climate-change-policy
• The work force will be adjusting to the new norm -
https://www.wsj.com/articles/the-work-from-home-shift-
shocked-companiesnow-theyre-learning-its-lessons-
11595649628

15. TRAINING AND DEVELOPMENT
• If you like to learn more
about trade and/or other
subjects as part of your
professional learning and
development then feel
free to review my material
on
https://www.udemy.com/
(search Paul Young CPA
CGA)
• These subjects address
how to fixed issues with
housing and/or systemic
issues related to economy
including government
policies