A bunch of white people move to the neighborhood and open up cupcake stores everywhere. John liberals object to the alternatives. Home sweet home. Thats our show tonight. And now, john stossel. John do you own a home or plan to . Were told there are big advantages to Home Ownership. First, youll mange money, they make money. They say buying a home is the best investment you can make. Second, Home Ownership is good for the community because homeowners care more about their schools and maintaining the quality of their neighborhood. Finally, its your castle. You can do whatever you want with your house no landlord can kick you out. All good things for the homeowner if true. The problem is once our government thinks something is good, politicians usually think its their job to require it or subsidize it. And they do. Today 85 of american mortgages are guaranteed with by the government your tax money. Theres the fha, the federal housing administration, fannie mae and freddie mac all of them put taxpayer money at risk by granting mortgages or buying them. And these guarantees invite reckless behavior. The guarantees on top of politicians pressuring banks to loan to underserved needy people led to the inflated housing prices that led to the last economic bubble. The housing bubble burst. They owed more than a their home was worst. This incredible housing bubble that we created. John it was incredible, a speck la tuf frenzy. Otherwise smart investors started saying housing prices can only go up. We can only get rich issuing more mortgages, and the prices did keep going up wildly. Until they didnt. The popping of the bubble is pretty bad. Lots of people lost lots of money, but at least we learned something from our mistakes. Government no longer guarantees loans to people with poor credit telling them, hey, you only have to put 3 down. Except actually governments now doing that again. A few months ago fannie and freddie after raising their minimum down payment to a measly 5 lowered them again to 3 president. Are they 3 . Are they crazy . A sensible congressman, jeb hensarling, tried to get an answer from the administrations new mortgage regulator. All things being equal, is a 3 down loan riskier to the taxpayer than a 10 down loan . I would say, mr. Chairman that that is generally true, but when you pair the down payment with other compensating factors do you believe that 3 down is riskier to the home purchaser than 10 down . If you carefully look at other considerations and take them into account john the man mumbling an answer is mel watt. Hes now in charge of regulating fannie mae and freddie mac. Then you can insure that a 3 loan is just as safe as a 10 down payment loan. John really . A 3 down payment is as safe as a 10 one . How can that be . Neither mel watt nor the secretary of housing would talk to us about the governments eagerness to give your money away, but were fortunate that former fha commissioner David Stephens will. He says in his two years serving under president obama he made the system safer. But not safe enough, says ed pinto, who studied housing risk for the American Enterprise institute. He says were on the way to another bubble. The government is once again doing the same thing that happened in the early 90s which is saying lets loosen credit, lets give loans to people that potentially cant afford them, and everything will be fine because house prices will go up, and we wont have the same problems we had before. That clip you had john they dont promise theyll go up anymore, but theyre just saying if were careful, itll all be fine. On the careful point, we looked at the risk of the 3 down loans, i they actually have much higher risk than the so down 10 down, so its exactly the opposite of what he says. John david, you ran this for a while. You did raise them a little bit. This was after the crash. Yeah. We raised theres been a variety of changes in the program, but ill say at the outset i agree with eds premise. Fha does do riskier loans than a lot of other Institutional Investors in the marketplace. Part of it is that is the area of the market that they serve. But theyve made changes. Theyve raised minimum credit score requirements, they require 10 down payments or larger if your credit score drops below 580, actually below 620 you start having more impact. John so if your credit score is really low youre a bad risk. People used to pay 20 . In most cases low credit score means bad risk, in most cases. John so why have the taxpayer lend the money . The problem is if youre the mayor of a city, how are you going to get schoolteachers Police Officers firefighters to work this those communities if theyre going to be never able to buy a home . John maybe theyll borrow from their parents, share with other people. People used to be schoolteachers and Police Officers before the government jumped in. Its great if you have a wealthy mom and dad. There is absolutely clearly, the answer to the chairmans question, hensarlings question in that Committee Hearing is a 10 down payment safer than the 3 down payment, yes. Without question it is. But does that mean you should just exclude anybody simply because they dont have a wealthy mom and dad or do you create rules that say look, were going to make it tougher on you, but there are some people within that margin that can get access to Home Ownership. John why is government even in this business . Why is john we used to have private banks that had their own money at risk, and they were much smarter about knowing eds a big risk but david is not. And then if they were wrong, they lost their own money. We need to make certain we put policies in place that provide housing for entrylevel Home Ownership, middle class jon john but why is that a job for government . Youre now head of the Mortgage Bankers associate. I say youre part of the revolving door. [laughter] your group is spending three million last year lobty bying for housing lobbying for housing. Not that much. John 3. 25 million in 2014. Let the Home Builders and Mortgage Bankers stand on their own. Look, i think thats a great vision, and everybody would like to see private capital lead the way. I would emphasize john, if you want to look at what happens in prerecession in the 2000s, it was a lot of program that is wall street and the private sector couldnt get enough of; stated income loans interestonly loans. Those werent products of fha or fannie mae and Freddie Mac John the private sector knew they could produce garbage because the government would buy it. Yeah, thats where fannie and freddie lost their way, because they used their portfolio to invest in those mortgages, and thats why theyre in conservatorship today. John ed, isnt it selfserving the say the Government Funds these loans . Yes. I would like to get it down to zero, if possible. The problem is if you were to pull out away today pull it away today house prices would probably drop by 30 or 40 . So the solution in my mind is john were already addicted to government. We are very addicted. John heres the current housing secretary, one of the guys that wouldnt talk to to us, at a press conference in d. C. Celebrating easy credit. Fha has long been a beacon of hope for underserved borrowers. This means expanding access to credit. I dont know john in other words john in other words, easy money here, you know . Just here. [laughter] as a taxpayer oh, keep it. [laughter] am i being unfair here this. Yes youre being unfair. John why . Because its not an all or nothing. This isnt the kind of issue where you say youre either all in or all out. This isnt the governments or the private sectors role. They both have to play a large role, and we need the kind of liquidity that finances a trillion dollars in Mortgage Capital in this country and quite frankly, the Banking System doesnt have the capital under the current restraints for mortgages john because government has tied them in knots. The governments loose money attitude is not unique to president obama. President bush said we want more people owning their own home, and heres president clinton. Our Home Ownership strategy will not cost the taxpayers one extra cent. Finish. John so, ed, how many cents did it cost us . Well fannie and freddie were bailed out in 2008 to the tune of about 180 billion. Fha lost a couple of billion dollars and the World Economy was brought to its knees, and the Financial System in the United States was cratered. John do you dispute this . I definitely do not dispute that, but it wasnt solely the responsibility of those institutions. However they participated in out. John in america we get clothing and cars and computers and music and movies without government involvement. Why does housing have to have it . Well, its a lot easier to finance a, you know, couple hundred dollars for a stereo than it is to finance a couple hundred thousand dollars for a home. It requires some sort of lending vehicle to be able to allow people to get home own errship Home Ownership. And by the way, john, i would challenge most of the employees of this company own a home, probably have it on a 30year mortgage john yeah. And they had to borrow from a bank, not the taxpayer. Canada pretty much does that. In canada the rules are much less liberal, right . You have to refinance your mortgage every five years, much Less Government participation. Theres more Home Ownership in canada than in america. Yeah john so get out go away why do we need you for all of this liberal lending that weve done . Throwing money as youve demonstrated, we havent moved the needle. All weve done john more speculation. Drive up prices and we havent put more money into homes. John thank you, ed. David im sorry for my rudeness to you, but youve been a good sport of that. One argument made in defense of davids point is it is in the interest of america for government to encourage Home Ownership not just because its good for the community and stability, but because owning a home is such a good investment for people. People on tv are always saying that. I was always raised to the believe that if you can own it you should own it. People think as soon as i get out of college, ive got to buy that house. John okay, they dont know much but even americas most successful investor said this i knew where i was going to want to live the next five or ten years, i would buy a home, and id finance it with a 30year mortgage. Its a terrific deal. John so tomorrow morning, run out and borrow money to buy a home. No, dont says financial writer morgan housel. Why not . We have 150 years of home price data on nationwide average home prices going back to the 1800s. When you look at that long history, home prices from 1890 to 1990 were flat after when you take out inflation. They were flat. They really did nothing. Its really been just the last 0 or 20 or 25 years that americans got this impression that homes were going to go up this price john because for 25 years they have been. Right. That was especially true in the early 2000s when we had this huge runup john so all these people think this is the best investment . Well, you know john shallow thinking. For years it was. Not just for two or three years, but for 20 years. John for 80 years, it wasnt. Right, but no one remembers back this en. Theres nothing that shows us home prices are going to go up above the rate of inflation. Thats not antiHome Ownership. I think most people are doing the right thing because a home gives you stability for your fam ily, a place to raise your kids. What it doesnt do its not something that you can own today and say im going to hold this for 20 years, cash it out, and its going to fund my retirement. Thats what we have no historical backup on. John there are tax benefits, are you including them . Rent, it seems like youre just paying more money down the drain. A lot of people love mortgages because they can write their interest off their taxes right . And thats true for a lot of people. Its not true for everyone because to take john not true for poor people. Its especially not true for poor people or very rich people, because to take the mortgage interest deduction, you have to itemize your tax dedicks. If youre on the low deductions. You do get john most people dont itemize. Its roughly half of homeowners will itemize their Tax Deductions and get any benefit, but the other half a lot of them think that they do. And when you talk to them, they say, oh i love my mortgage because i can write off my interest. You find out no, you dont. You dont get to write off anything. John and paying rent, i throwing money away . In the early years, 60, 70 80 of your Monthly Payment goes towards interest. So when youre renting, a lot of people say youre throwing money away. If you have a mortgage, most of the first few years is interest. John and yet even after the crash gallup poll, whats the best longterm investment . Real estate on top and then gold weirdly, which hasnt done that well. Stocks 24 . Savings account,. Savings account, 14 . People still believe. When we had the dot. Com bubble in stocks, after the crash no one wanted anything to do with stocks. But with real estate even after this crash where millions of americans lost their homes trillions of dollars of wealth was evaporated, even after that you see these polls, and huge portions of people in the United States still believe that their house will make the best longterm investment. Over the long run what you should expect is your home will keep up with inflation and probably nothing else. John thank you, morgan. To join this discussion, please follow me at fbnstossel, use the hashtag house rules or like my facebook page. You can post on my wall. Coming up, tiny homes. Cheap and maybe illegal. And also homings that you can share. Homes that you can share. On air b air bnb. Com, you can book and stay in any one you like all for a price that suits you. [ female announcer ] who are we . We are the thinkers. The job jugglers. The up allnighters. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can say, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into Business Owners. And were here to help start yours. Now . Can i at least put my shoes on . If your bladder is calling the shots. You may have a medical condition called overactive bladder. Or oab youve got to be kidding me. Ive had enough its time to talk to the doctor. Ask your doctor how myrbetriq may help treat. Oab symptoms of urgency frequency, and leakage. Which may mean fewer trips to the bathroom. Myrbetriq mirabegron may increase your blood pressure. Myrbetriq may increase your chances. Of not being able to empty your bladder. Tell your doctor right away if you have. Trouble emptying your bladder or have a weak urine stream. Myrbetriq may affect. Or be affected by other medications. So tell your doctor about all the medicines you take. Before taking myrbetriq, tell your doctor if you have liver or kidney problems. Common side effects include increased blood pressure, common cold symptoms, urinary tract infection, and headache. Take charge by talking to your doctor about your oab symptoms and myrbetriq. Find out if you can get your first prescription at no cost by visiting myrbetriq. Com john many people who travel would like to replace a hotel for a more homelike experience if you could, and now you can. Thanks to homesharing Companies Like roomarama and the biggest, air b air bnb. Whether where you want to whether where you want to go. On air bnb. Com you can book and stay in any one you like, all for a price that suits you. John its part of the new sharing economy; people advertise their homes or extra a rooms on web sites like roomarama or airbnb which stands for air bed and breakfast, tourists pick homes to stay in instead of hotels. This mother and daughter who wanted to visit new york city found an apartment where the owner also fixes them breakfast. Being in the city with a child is much more convenient because not only is his breakfast is amazing, we are able to use the fridge, we have a microwave, fresh hot coffee ooh, ill make it. John the girl gets a hug from her host. Enjoy your fries. So lots of people love the homesharing companies. Airbnb has more than six million users. But whenever theres a new idea, some people say youve got to stop that or at least regulate it. Airbnb is operating, essentially with no regulation. There has been p incidents where theres been prostitution, drug sale, drug use. John and that has happened. Hookers are home sharing, says the New York Post, and there are other horror stories. Orgy meth addict and so on. Its the reason why dale carlson of San Francisco, a leader of the coalition of political officials, activists and Hotel Executives called the Share Better Coalition wants to restrict room showering. Room showering. Sharing. Why . There arent that many hookers using room shares. No, but there are about 10000 listings for residential units in San Francisco on airbnb and roomarama and 60 other web sites that cater to tours and thats a problem because were facing the worst housing crisis in the history of the city, or at least since 1906 and the great earthquake. Two of thirds of the listings on airbnb are fulltime listings. They are units, apartments, condo, homes, they are in some cases entire apartment buildings that are offered to tourists on a fulltime basis. Theyve, essentially been illegally converted into hotel rooms. Second john so what . Theyre empty somebody wants to use it. They were built for longterm tenants and in San Francisco up until february it was illegal to rent to tourists for less than 30 days in a residential unit, and thats the case in most cities around the country. John but why . Thats just you control freaks trying to restrict free peoples choices. Thats not true at all. We are looking to protect the availability and affordability of housing in San Francisco as other Community Groups are doing around the country and around the world, and were looking to protect the residential character of neighborhoods. John how would banning how much commercial activity would you like to see in your neighborhood, john . Would you like somebody in your building representing to a tourist every night of the week so that there was a different set of strangers rolling in the hobby, or rolling down the hall john thats an issue for me and my landlord, thats not for the politicians to can decide if theres too much traffic in my building. The landlord can police that. On airbnb weve got a lot of tenants who have been doing this in San Francisco without the landlords permission. John so the landlord can evict them. And we have had a number of evictions. John so fine landlords converting apartments illegally to shortterm rentals for tourists. And lets also talk about this notion of sharing because nobodys doing any sharing. Money is changing hands middlemen are taking fat commissions. People john i think a lot of people are very happy with this. Nobodys doing any sharing. John but the customers are happy. Most of em. The customers are happy and the hosts are happy as a general rule. But other tenants in the building, other condo owners in a building, other neighbors in the neighborhood are not happy. John so you want i think they deserve some consideration. Zoning says there are specific places set aside for specific uses. You know, commercial activities like hotels dont belong in residential neighborhoods. And heres one other thing that i wanted to say, we are not looking to ban this activity. If people want to rent an extra room in their home if people want to rent their home for a few weeks a year while they go on vacation, we can accommodate that. What were after is the thousands and thousands and thousands of units that are rented to tourists on a fulltime basis that arent regulated that arent paying taxes, that are unavailable to longterm residents. John you want that tax money, the hotel tax is 14 in San Francisco, even higher in new york. Thank you dale carlson. Coming up, would you want to live in a home this small . Some people do, so they do it illegally. John homes keep getting more expensive. One reason is governments stupid rules and ill get to that later but another reason is that people keep building bigger houses. Today 40 of new homes have four or more bedrooms. Average Square Footage has almost doubled since i was a kid. All thats fine with me if people can afford it and want that, but what if you cant, or what if you want to lower your Carbon Footprint and live in a smaller house . The people who built these little houses in washington d. C. Do. Each house costs less than 50,000. They have wheels, so they can double as mobile homes. More homes like these would allow more people who cant afford homes now to buy homes, and they also take up less space. So what a wonderful idea, except for americas zoning laws. In washington the owner of one of these homes says its totally legal to buy one of these and to park it somewhere and really only becomes illegal once you potentially illegal once you step inside and say this is my home. John that was jay austin. He joins me now. So its legal if you kept it on a trailer, but once you park it, its illegal . Yes. Correct. Off the trailer the house would be illegal. On a trailer, the house is legal but i become an illegal occupant of my own house. John and you said what the heck, youre living there and youre illegal. Yes, correct. John and youre aware they may prosecute you . I am. Its definitely a risk that i was willing to take. I think a 30year mortgage for a house i cant afford is a rusk as well. It seemed an appropriate risk. John theres a group of you, you built four homes, and some are happily living there. Uhhuh. John john they cost yours cost 50,000 . Probably under that. Some of the offgrid appliances definitely john this one . Yeah, thats my house. Thats about 35 40,000. John and some are as little as 10,000 . Yeah, definitely. John full functioning a bathroom, kitchen . Uhhuh. John and we have pictures showing the inside. Your house is 144 square feet. Thats enough in. Oh definitely. Enough for a kitchen for some seating area for some sleeping area john so why is this illegal . A lot of outdated zoning. Back in the day maybe there were, you know, some families trying to live in houses that were a little too small for that number of occupants, but we just force that family to live in a home they cant afford or to be homeless. John and washington is actually rewriting its zoning code it is. John but politicians, theyve been doing this for a decade already, and they havent made changes. Right. John not all politicians are idiots all the time. Our former mayor here in new york, Michael Bloomberg when he wasnt trying to ban soft drinks guns, cigarette smoking proposed some sensible things knowing here in new york people off pay several thousand dollars per month for studio apartments. The mayor said this we have a shortfall now of about 800,000 homes, and its only going to get worse. John so he waived zoning and density rules to allow an experiment in microapartments. Theyre being built now. But bloombergs microapartments are 260 square feet which still makes them a lot bigger than your house which is about half that. Correct. John so, i mean why is 260 square feet considered micro . It is smaller than what were used to, and even those developments, those are Huge Development cans. We dont have any ability for a small, doityourself builder to build their own home. John do people walk by your neighborhood and like, knock on the door oh, definitely. Weve done many tours, mini concerts a lot of free book readings just events to show people the spaces, kind of educate john whats going to happen . Youre going to be kicked out . This summer the city actually released a new ordinance that would prohibit camping in any of these houses, so up until that point we had said were not living here full time because that would be all legal, were merely camping in these houses. Laugh and in many cities thats illegal outright. You cant sleep in your car so you cant sleep in a home thats on wheels. John whats going to happen . Were going to find out. John overcrowding was one of the reasons politicians cited for creating these rules, but isnt that up to us if we decide how much of a crowd we want . Jay austin, thank you. Coming up, ill debate a democrat who calls gentrification a cancer. John sometimes i think that no matter what good things you do, liberals will still tell you youre wrong. For decades they complained that neighborhoods are segregated because rich white people dont want to live in raciallymixed neighborhoods. And sometimes they had a point. But now times have changed. Some rich white people want to move into poorer nonwhite neighborhoods because they like the idea of diversity. Or cheaper real estate. So are the liberals finally happy . No now they complain about gentrification. One put these stickers on businesses andtrified parts of austin texas suggesting gentrification is racist. When parts of new york began to gentrify in the 80s liberals protested, and riots broke out. The New York Post called it a night of rage, a battle between yuppies and hippies. The battle continues today in many parts of america. Protesters came with several signs expressing how they feel. Some say gentrification is violent stop tax breaks for wealthy Developers John we should, but gentrification is violent . Lots of people say that. U. S. Congressman hakim jeff race calls gentrification a cancer. Congressman youre from brooklyn where theres a lot of gentrification. Thats a cancer . If you think about what a cancer does, it ravages a neighborhood neighborhood, consumes it and moves on to the next neighborhood, and i refer to socioeconomic gentrification which relates to dramatically increasing housing prices thereby pushing out working families, middle class folks, Senior Citizens poor folks, artists, Young College students starting out. John the census data found no evidence of displacement of noincome, lowincome nonwhite households in gentrifying neighborhoods. Im not sure who was the author of that study, but in new york city its pretty clear. You can take some of the neighborhoods that i represent in fort green and clinton hill and bedford five about is where just a decade ago you could rent a twobedroom apartment for less than 1,000. Right now in many of those neighborhoods youd be hard pressed to find a twobedroom neighborhood that you could rent for less than 3,000. John spike lee agrees with you he compared gentrifiers to Christopher Columbus who came to america to cant come in with people [inaudible] for generations, and you come and [bleep] cant do that [applause] john cant do that . Cant suggests you politicians get a right to say, no, you may not live there. Im not of the view that we should tell anyone that they cant live in any particular neighborhood. What im saying is that weve got to make sure that we do Everything Possible to preserve the widespread diversity that we value in places like brooklyn, new york. We want to be able to preserve that john scwn and what should government do to preserve it . Well the one thing that i think we have to do is more adepressly promote policies for the creation and preservation of Affordable Housing. John id call gentrification progress. Heres how comedian michael shea joked about it. We dont know what gentrification means, its a bunch of white people who moved to a [bleep] neighborhood and opened up cupcake how has this changed . I havent seen a syringe in three years. You dont have to like carry a club when you go up the stairs. You used to have to beat your way up to your apartment. John those people are happy. They feel safer. Bring on the hipsters. Gentrification is good for the poor. The average income of black people with High School Diplomas in gentrifying areas soared after gentrification. Well, you know, again im not sure of the methodology of that particular study. Id be happy to take a look at it. But comedians do comedy, Public Officials do Public Policy in central brooklyn. Decades ago in the 1980s these were neighborhoods that were avenue amed by the crack cocaine wars. You had people who stayed worked hard, got involved, turned those neighborhoods around and if they didnt own property, if they were just renters, they now find themselves in a situation where in many instances theyre unable to stay as things change, as the school gets better, as theres better public safety, as youve got amenities and restaurants and stores. And youve got individuals who become victims of their own success. I dont think thats fair in america. John if you want to help these poor people, i assume you want to get rid of the or mortgage deduction on taxes for a house . Because that overwhelmingly helps rich people. Well, i support the mortgage deduction on Home Ownership, because we should be promoting Home Ownership. John but it almost all goes to rich people. Well, if you think about the transition from being working class poor into the middle class, Home Ownership is essential. And so as that transition takes place, you have more americans being able to benefit from the mortgage deduction. Weve got more renters in new york city than owners, so weve t got to do a better job of fostering affordable renters opportunities john more subsidies for representers well, im not saying john and keep the mortgage deduction . Give money away . Not at all. If youre going to Incentivize Development if youre going to give tax breaks, it seems to me that youve got some exchange of of Public Benefit that should talk place. John thank you congressman jeffries. Thank you very much. John i say let free people live wherever they want, but end then what do we do about the homeless . Where will street people go . We cover that next. So,as my personal financial psychic, im sure you know what this meeting is about. Yes, a raise. Im letting you go. I knew that. You see, this is my amerivest managed. Balances. No. Portfolio. And if doesnt perform well for two consecutive gold. Quarters. Quarters. Yup. Then amerivest gives me back their advisory. Stocks. Fees. Fees. Fees for those quarters. Yeah. So, im confident im in good hands. For all the confidence you need. Td ameritrade. You got this. John homelessness continues to be a significant problem in part of america, and politicians say government must come to the rescue. Number one yes, we need more shelters. John more shelters. Liberals also want more of what they call Affordable Housing plus free housing for the truly needy and lots of programs for street people. Spend about 2. 9 billion on over 20 programs targeting homelessness. Technically enough money to build 145,000 homes at 200,000 apiece. John thats a lot of money but dont we need to do more for those desperate people on the street . And especially get them housing . No, says Heather Mcdonald who researches this at the manhattan institute. No . Well, john, first of all, i wish we could retire the phrase homelessness, because it suggests that these are people that were housed and subjected to a hurricane, and now theyve lost their home in a natural disaster. In fact many of these people, as you yourself experienced have made john so you figured out that was actually me i recall, i recall the and i recognized the sort of certain joie de vivre and elegance to him. Its not like your average homeless guy. John josh street people. And its become a scam in many cities. It has become a lifestyle choice. So but the who are john a lifestyle choice. Its not a good life, begging. Well if you like a lot of booze and drugs, you get people that give you money and, of course thats what the money goes for immediately. John and i should say i once in denver offered 12 people who were Holding Signs will work for food gave them a bus token and a job offer. They didnt show up. Many other studies have shown that these, the people actually begging on the street are often just hustlers. Right. Theyre hustlers. Some of them, of course, are there because we did empty the mental institutions, and they would otherwise be receiving mental treatment. John and they need help. And they need help. Because they really are incapable of maintaining a job that would keep a house over their heads. John so the new word is get em homes. The mentally ill chemically abusing whether theyre alcoholics or drug addicts if you, if you have a rule that they have to stay off the street maybe its worth it. I would also say though get them treatment. But then you have a whole other category in new york above all else of single mothers with children. And they also get to claim the mantle of homelessness. And they are usually living with their own single mother or with friends x final hi they say finally they say its too crowded, i cant take it any longer, i want my own home. And they get to call themselves homeless. Given a free government apartment is completely wrong because its going to act as a magnet for more single mothers and more people demanding free housing. John and they do get to be first on list then if theyre a single mother. And i hear mayor de blasio in new york is just putting them in lots of homes where they dont work and they get stoned all day. Well, they get priority for Public Housing and then they get priority for section eight. Obviously, you as a libertarian would say its very hard to untangle the web of government subsidy. So its a very complicated system right now, you know . It looks like the better solution is Public Housing whereas you might say the better solution is the market the free market. You know, another thing that alcoholics used to have in the 1920s was very inexpensive socalled cage housing on skid row. That was before regulation came in and said, no, if youre going to offer housing it has to be x square feet with private bathrooms and what not. And that priced out a place to get off the street john for a buck a night. A buck a night, right. And thats now illegal. You cant do that. John and they were lousy places but they were better than People Living on the street. On the street, which is not just bad for the people on the street, its also bad for cities. At the very least, we have to have a rule. If were going to ask government to provide free housing on demand to people as we have in new york, you dont get to sit and lie on the streets and colonize public spaces. I dont know john and to prevent john and to prevent lying on the street and colonizing public space a lot of Business Owners are putting little spikes up which, heres a headline spikes, metal studs treat the homeless like animals. Well, theyre just trying to maintain some public order. Its not unreasonable to expect that city sidewalks are free and clear for people workers getting to their jobs, to feel safe for Business Owners not to have to clean feces and crack needles from their stoops in the morning. And this is sort of the worst but last possible solution when you have public order thats broken down. John thank you heather macdonald, of the manhattan institute. Thank you. John coming up a better way to create more Affordable Housing. Earth hour is a way for the citizens of the world to send clear message they want action on Climate Change. Use your power. Use your power. Use your power. Use your power. Use your power to change Climate Change at earthhour. Org [music] hey, girl. Is it crazy that your soccer trophy is talking to you right now . It kinda is. Its as crazy as you not rolling over your old 401k. Cue the horns. Just harness the confidence it took you to win me and call td ameritrades rollover consultants. Theyll help with the hassle by guiding you th step. And theyll even call your old provider. Its easy. Even she could do it. Whatever, janet. For all the confidence you need td ameritrade. You got this. We need more Affordable Housing. Affordable since the housing. Affordable housing. John but those that topped the most are due the most to keep us from having a. Bear the central planners want to stop apartment owners from offering of rates that people can afford or the identification making it harder for people to live for the want to live his doting zealots who declare it is illegal to live in little homes like these and they oppose so many rules and every house cost more. Harvard study found cities with tough zoning rules make it so timeconsuming and increases the cost of a typical house by 46,000. Complex zoning rules cause of affordability and others are central planners like this woman in washington d. C. Here she is mocking houston. I hate to make houston the whipping boys. Goahead. But they dont have zoning or regulation but it isnt exactly the full flower of urbanism. John excuse me but fewer rules in houston mean that if someone wants to turn their house into a little store like this person did, they can. You can build Tall Buildings next to shorter ones they even allowed someone to build a house out of beer cans and as a result has directed many papers call them the best city to work and live in as much more Affordable Housing the average price of the twobedroom house and use it is 300,000 but in washington d. C. And visible 600,000. There are other factors but heavy regulation is a big part even president obama seems to get that. To bring together cities and states that drive the trend for working families. John lets address those barriers that means allowing people to build little houses like these. But the part problem for politicians that means getting rid of the unnecessary barriers. Politicians and planners really want to do that they are not in the getting clinton did of business but getting more and then the more self important they feel in the more power they have. If you want to build something you better come here to kiss my ring. In many cities builders have learned that takes lawyers the and paper work even then the contractors have to wait two years just to get permission. That is why housing is expensive. Not because of greedy landlords or gentrification mostly because of politicians. That is our show. See you next week. Monday, good night from new york. Neil welcome, everybody. Im neil cavuto. And it is a story of the week that continues to leave all other stories in its wake. A plane crash a suicide pilot a frantic captain. 144 terrified passengers and 5 crew members can you hear screaming on tape knowing the end is near. Maybe because we all fly, maybe because of 9 11. Maybe because of so many scary sky incidents since. What happens up there grips us all down here. Why terrorists are targeting planes and why authorities keep beefing up security measures for those planes. When Something Like this happen, everybody stops if for no other reason than to consider the random nature