Risk of Ruin Let Them Eat Cake
18 snips
Dec 8, 2025 Kevin Erdmann, a housing economist at the Mercatus Center, and Ben Baer, CEO of BuildCasa, delve into the surprising shift from the 2008 financial crash to today's housing shortages. They discuss how post-crash regulations transformed the lending landscape, leading to a rental market boom. Erdmann shares insights on migration-induced demand bubbles and the intricacies of zoning laws as barriers to housing development. Baer reveals innovative strategies for leveraging small-lot developments in California and the challenges posed by recent legislation.
AI Snips
Chapters
Books
Transcript
Episode notes
Builder Turned Advantage Player Turned Builder
- Cody learned homebuilding during the 2000s boom, built spec homes, then survived the crash by marketing custom builds without buying land.
- He later pivoted to advantage play and returned to development once he had capital.
Negotiate Every Construction Line Item
- Aggressively shop subcontractors and materials to squeeze percentages at every line item.
- Negotiate terms, credits, and float to lower effective costs and improve margins.
Cottage Clusters Remain Viable Against Competition
- Small-scale cottage clusters can pencil even with competition because starter-home supply remains scarce.
- Builders can hold or convert units to rentals if sales slow.
