House Money: Elon Musk's company town; housing's impact on loneliness

House Money is Nashville Business Journal’s examination of real-estate stories and trends across the country. It puts Middle Tennessee's explosive development in the context with the national market.

The ongoing economic effects of the coronavirus have disrupted the rhythms of housing markets. The market is at odds with itself because of the rising interest rates. There are plenty of buyers but there's nowhere for sellers to turn. The New York Times reports on an increase in mortgage requests, but sellers are feeling 'locked-in' by low interest rates.

California's housing crisis has been exemplified by a city in the state. Atherton is a wealthy San Francisco suburban city with an average income of $530,000. It has fought against the mandate from the state that all municipalities must add housing. Atherton residents such as Marc Andreessen and Steph Curry have called for the city to not be subjected to the state law. This article from The Real Deal explores the town's NIMBY sentiments (not in my back yard) and the state's demand that it add housing.

Florida is not immune to the housing shortage in the country, but it faces environmental challenges which could limit the potential for its development. Residents in Miami-Dade County are opposed to a project because it would send stormwater into the nearby neighborhoods. This article from local outlet WLRN explains the issue.

Young Americans are suffering from the lack of housing. According to this Business Insider article, isolation is one of the less obvious effects. Some experts believe that social media may be to blame for Millennials, Gen Z and their 'loneliest generation' status. However, others say the environment they live in is the main factor. Many communities with shared green spaces and more greenery are too expensive, preventing younger Americans from living in the areas that could lead them to create their own community.

Elon Musk is making headlines with his Twitter leadership, but he has other projects in the works. Musk is building a community in Texas called Snailbrook that he plans to use for housing three of his companies, Tesla, SpaceX, and Boring. News reports have raised concern that American companies may be on the path to revive a problematic past: company towns. This article from The Guardian examines the history of housing provided by employers and looks at plans announced by companies such as Google and Facebook to create communities for their employees.