Aug 23, 2022 — Clifton

How To Solve Housing With Capitalism

My grandfather, Conrad Pat Harness, came back from the Sicily campaign of World War II to Washington DC and found himself a real estate journalist for the Washington Post. This led to a long career in home building, and ultimately a position on the board of NAHB. My father, Chris Harness, has been home building for my entire life. His footprint has over 20,000 new units constructed in a long career.

Generations of Harnesses have focused on housing. It's in my blood, on my mind when I wake up. It's a passionate obsession.

We have a massive housing gap in the United States. The question is whether the tools of capitalism — speed, incentive, competition — can be pointed at it deliberately enough to close it. That is what TestFit is trying to do: make the economic case for building housing so fast and so clear that developers can't afford not to act.

Five tools worth building on this
  1. Housing supply gap calculator by metro — units needed vs units permitted
  2. Developer IRR vs affordability tradeoff — at what rent does the deal stop penciling?
  3. Construction cost vs rent growth comparator — which markets are catching up?
  4. Unit economics by building type — garden vs podium vs wrap at today's costs
  5. Housing shortage timeline estimator — at current permit rates, when does the gap close?