{"id":3220,"date":"2022-06-14T17:39:30","date_gmt":"2022-06-14T17:39:30","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/06\/14\/opinion-the-tragedy-of-location-over-community\/"},"modified":"2025-03-13T02:44:04","modified_gmt":"2025-03-13T02:44:04","slug":"opinion-the-tragedy-of-location-over-community","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/06\/14\/opinion-the-tragedy-of-location-over-community\/","title":{"rendered":"Opinion: The tragedy of location over community"},"content":{"rendered":"\n

In real estate, certain phrases resound.\u00a0Everyone knows the most famous of these \u2014 \u201clocation, location, location.\u201d\u00a0An important \u2014 but perhaps distant second \u2014 is \u201cReal Estate is Local.\u201d\u00a0 <\/p>\n\n\n\n

In the world of globalization, footloose billionaires and celebrity culture, we tend to forget that most people don\u2019t have multiple homes or jet-set lives. For most people, housing is an impossibility and for those of us lucky enough to have shelter, homeownership is very much a local question.\u00a0<\/p>\n\n\n\n

If you can\u2019t flit between Miami, Beverly Hills, and London, you likely care more about the details of your singular residence. What are the schools like?\u00a0Are your neighbors friendly?\u00a0 Are you part of a community? And so on.<\/p>\n\n\n\n

It’s a wildly different housing market<\/h4>\n\n\n\n

In the US, those questions have taken on a more weighty tone over the past five years as house-prices have skyrocketed while wages have stagnated or grown only slightly.\u00a0An entire generation graduated into a world of mediocre income, forcing them to \u201creturn\u201d home to live with parents.\u00a0Outside of a few shining sectors, jobs that allow for home-affordability have been rare.\u00a0 This coupled with a different set of attitudes in new generations<\/a> and with a mistrust of \u201cpermanence,\u201d have led to a housing market that is wildly different than it was before.<\/p>\n\n\n\n

What about community?<\/h4>\n\n\n\n

All of this has militated strongly against the idea of \u201ccommunity.\u201d\u00a0 This word is naturally fluid and ambiguous and certainly means different things to different people. Irrespective of these nuances, one common thread persists. Communities are symbiotic clusters where people rely on each other for needs and wants.\u00a0For most people, this has an element of physicality. They want to talk to, mingle with, raise children with, and \u201cbreak bread\u201d with others in their communities.\u00a0\u00a0<\/p>\n\n\n\n

Which brings us back to that memorable phrase, \u201cReal estate is local.\u201d<\/h4>\n\n\n\n

In the classic sense, communities are built locally.\u00a0But they rely on their members\u2019 ability to stay in the area, to be part of the active energies in any particular locale.\u00a0In many towns and cities in the U.S., this ability has been eroded, as people get priced out of the market<\/a> and are forced to move farther away from these vital elements of community and, sadly, from their own places of employment.\u00a0Lest anyone suggest that this effects only those being displaced, that notion is plain wrong. Eroding and palsied communities affect everyone, even those who happen to be lucky enough to stick.<\/p>\n\n\n\n

We can wring our hands, or we can act to remedy the situation.\u00a0 <\/h4>\n\n\n\n

The vectors are currently skewed.\u00a0Many people suggest they want \u201cdiverse communities<\/a>\u201d but the socio-economic factors create homogeneity.\u00a0Many people suggest that they want their kids to be \u201craised in a village,\u201d but the socio-economic vectors make the village dwellers transient.\u00a0\u00a0<\/p>\n\n\n\n

So how do we act?  In this author\u2019s view, there are four pillars to action:<\/p>\n\n\n\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Activism
2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Fight NIMBY-ism
3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Create new business models
4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Support institutions<\/p>\n\n\n\n

Let\u2019s examine each one.<\/h4>\n\n\n\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Activism.<\/strong> While business people don\u2019t often seek answers in bottoms-up political processes, it is a well-documented and incontrovertible fact that social change has come about in the U.S. as the result of activism, followed by forced legislation.\u00a0The housing crisis<\/a> and other forms of economic and racial inequalities are squarely issues of social justice and democracy and must be handled as such.<\/p>\n\n\n\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Fighting NIMBY-ism.<\/strong> The \u201cNot in My Backyard\u201d fights tend to cut across the normal political lines.\u00a0\u201cProtecting property values\u201d is sacrosanct to most Americans. Implicit in this, naturally, is that class and race diversity in neighborhoods drives prices lower.\u00a0NIMBY-ism must be fought at every turn and the hypocrisy associated with it called out as such.<\/p>\n\n\n\n

3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Create new business models.<\/strong> The housing industry has been operating on the same model since the early post-War period.\u00a0Loans-based on credit-worthiness, mortgages, and interest-based payment structures are the mode in housing.\u00a0However, does it have to be this way?\u00a0What about taking aspects of the Sharing Economy and Decentralized Finance and seeing if innovations based on those models and platforms can allow for more widespread home access?<\/p>\n\n\n\n

4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Support institutions.<\/strong> There are many neighborhood associations, non-profits, NGOs, and other institutions that need support on the financial, material, and personnel axis.\u00a0 Anyone who cares about these issues can support exemplary institutions that aim at redress and problem-solving.<\/p>\n\n\n\n

Though there are a lot of communities that indeed are dispersed and global, for the most part, the idea of \u201ccommunity\u201d is local.\u00a0Local implies residential and residential implies housing.\u00a0As we distort the housing market, we distort the very possibilities of community.\u00a0 And that is a synthetic tragedy.<\/p>\n\n\n\n

This column does not necessarily reflect the opinion of RealTrends\u2019 editorial department and its owners.<\/em><\/p>\n\n\n\n

To contact the author of this story:
Romi Mahajan at romi@thekkmgroup.com<\/a><\/p>\n\n\n\n

To contact the editor responsible for this story:
Tracey Velt at tracey@hwmedia.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

If you can\u2019t flit between Miami, Beverly Hills, and London, you likely care more about the details of your singular residence. What are the schools like?\u00a0Are your neighbors friendly?\u00a0 Are you part of a community? 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