June 3, 2022
Let's talk about closing the wealth gap -- through tech.
It's no secret that our country is facing a tremendous housing crisis. In addition to having historically low supply, exacerbated by a recent buying spree during COVID and supply chain problems, we have much more deeply-rooted issues to grapple with. The wealth gap between high and low-medium income Americans is staggering, and growing. Much of that gap can be attributed to race-based mortgage laws of the 1920s-50s, that create a ripple effect allowing some citizens to accumulate generational wealth, and others to not.
While new affordable housing development is certainly needed, building is extremely time and capital intensive and can be slow to respond to an immediate crisis. That's why new mortgage-based tech companies make me very hopeful. Divvy, for example, lowers down payment requirements to 1-2% (vs a typical 10-20%) and works with their clients to build equity. SoFi issues unbiased mortgages, even to borrowers with low credit scores. Nabr has created a rent-to-own model for condos. Perhaps this focus on how homes get purchased (and by whom) will be a critical part of the solution.
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MUST-READS
Tesla makes pitch to turn Texas homes in virtual power plants // Bloomberg
RISD students are designing spaces for people to safely do drugs // FastCompany
Chattanooga finds fresh identity as a tech, VC hub // WSJ
A brilliant idea for utilizing 18% of office space that is vacant // FastCompany
URBAN-X, the platform by MINI for startups reimagining city life, announces JVP as its new venture partner // BMW Group
Crypto companies are signing leases... in IRL real estate // NYTimes
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IDEA SPOTLIGHT
Metropolis Deep Green Podcast
Deep Green is a show about how the built environment impacts climate change and equity. According to their site: "Buildings are some of the biggest things we make as human beings. In these bi-weekly episodes, we explore how through understanding buildings, cities, and all the things that go into them, we can do better for the environment and all life on this planet." Topics include regenerative interior design, water as a battery, and making offices carbon neutral.
