Marohn references the post-World War II era as a period when efficiency did contribute to affordability in housing. During that time, federal programs like the GI Bill and the establishment of entities such as Fannie Mae and the FHA expanded mortgage access, leading to a surge in home construction. This expansion facilitated large-scale production methods, reducing costs per unit and making homeownership more attainable.
However, Marohn contends that the contemporary housing market operates differently. He suggests that increased liquidity now often fuels speculation, consolidates market power, and creates financial instability, resulting in higher housing costs rather than improved affordability.
This perspective aligns with observations from other analysts. For instance, George Monbiot, writing for The Guardian, critiques the reliance on volume housebuilders who limit construction to maintain high prices, thereby minimizing affordable housing availability.
While efficiency and economies of scale once played a significant role in making housing more affordable, Marohn and others argue that the current dynamics of the housing market require a reevaluation of this approach. Addressing affordability today may necessitate confronting issues like financialization, speculative investment, and the consolidation of market power.