Home is Where the Heart (and Wallet) Is
Welcome to the inaugural issue of "Domicile," a newsletter focused on all aspects of the home, including Design, Architecture, Landscaping, Renovation, Real Estate, Financing, and more
For families, it is the cornerstone of domestic life, where children play and learn, watched over by caring parents, and where everyone tries to live in peace, harmony, and love inside the home.
In view of the home’s centrality in our lives is it any wonder how we obsess over its details? Housing and its associated industries account for 15-18% of the American economy. It is considered by most economists to be THE MAJOR driver of the US economy. When the housing sector does well, the rest of the economy does too. Conversely, when housing is in the doldrums, the rest of the economy often follows.
Housing’s close bond with the economy is based largely on the number of people employed in real estate (over 2 million), construction (hundreds of thousands), banking (many thousands), local, state, and Federal governments (millions), not to mention all the small businesses where housing is the central focus (home inspectors, renovators, movers, interior designers, architects, landscapers). The average American household spends more than $20,000 a year on their home (e.g., mortgage, rent, repairs, property taxes, insurance, upkeep, furnishings, appliances). The affluent spend much more.
During the recent pandemic, a veritable land rush bid up the cost of a typical home 25%–100% relative to its pre-pandemic value. The major “culprit” in this unprecedented “cost overrun” was the historically low-interest rates offered to prospective buyers.
But other factors were also at play. Remote work offered as a temporary (or even permanent) option, led many to seek larger homes in less urban areas, often far from their employer’s physical base.
So frenzied was the real estate market during much of the pandemic that many purchased a home sight unseen. The New York Times believes that nearly three-quarters of these pandemic-era buyers have experienced some serious doubts about the property recently purchased.
Were buyers so desperate to buy a home that they threw caution (and good sense) to the wind in buying an “albatross” property? If so, why didn’t their agents dissuade them from closing on a foolhardy purchase?
Although many factors were at play during the recent housing frenzy, one that deserves more attention is the woeful lack of knowledge about most matters, real estate, architecture, design, and construction. Instead, we rely mostly on professionals to do the job without us making the effort to become deeply educated in the ways of the home.
Hence, this newsletter is dedicated to providing educational resources for those interested in all aspects of the home (hence the name “Domicile,” derived from “Domus” the Latin word for “house” or “home”). Each newsletter issue will examine a key aspect of home life, be it real estate, insurance, renovation, design, financing, landscaping, and so on.
Each issue will also attempt to answer (or at least address) a specific question regarding the Home.
For this inaugural issue, the question posed is a basic one–what does Domicile hope to accomplish? What are its objectives and how can you, dear reader, help with this enterprise?
The goal of the newsletter is to share knowledge both through comments posted to this and future articles as well as engaging in a Facebook group called “Domicile,” which you can access here. Like most initial endeavors, the newsletter and FB discussion group are works in progress. The FB group contains recommendations for resources beginning with an excellent Substack newsletter, “Housing Market Insights.” Each issue of Domicile will highlight a helpful resource for readers. In addition, the Domicile FB Group page also contains book recommendations and articles featured from other online sources. A recent NY Times article, “What’s Up With the Crazy Housing Market,” provides an excellent summary of the current state of the market.
This newsletter’s nom-de-plume is inspired by Marcus Vitruvius, the foremost architect of ancient Rome. His influence was vast and long-lasting (including on Leonardo Da Vinci).
Thank you for reading this newsletter! Please feel free to comment, either on Substack or on the FB group Domicile.