Breaking Down: Collapse Daily Episode 126 - Shrinking Options for Homeowners
Mar 5, 2026
Discussion of a sharp rise in foreclosures and the mounting pressure on homeowners. Exploration of tiny apartments under 400 sq ft and how shrinkflation is reshaping urban housing. Examination of proposed policy fixes like ultra-long mortgages and tapping retirement savings for down payments and why they can backfire.
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Housing Treated As Investment Not Right
- Shelter is presented as a basic human need yet in capitalist societies housing is treated as an investment rather than a right.
- Kory explains this mismatch drives homelessness and corporate rent-seeking that prices people out of homes.
Foreclosures Surged 38 Percent
- Foreclosures rose 38% year-over-year, signaling growing pressure on homeowners even if causes vary.
- Kory cites verifiable sources and notes the stat shows rising stress on owners though underlying drivers can be both internal and external.
Micro Apartments Reflect Housing Shrinkflation
- Micro apartments under 400 sq ft are growing in U.S. cities but often cost nearly as much as larger units due to housing shortage.
- Kory compares this to shrinkflation: size falls but prices stay similar because demand is high.