Tiny Homes, Big Headache: Why Should I Subsidize Your Backyard Apartment?

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Congress is floating a new bill that would offer government-backed second mortgages for building tiny homes—also known as accessory dwelling units (ADUs)—in backyards, garages, and basements. Promoted as a fix for the so-called "housing shortage," critics like Chris push back hard. He argues this is not a federal issue, slams the idea of taxpayer subsidies for private rentals, and warns of the chaos it could unleash on neighborhood zoning, infrastructure, and aesthetics. From overloaded roads and schools to shrinking yards and rising tensions, he calls this a recipe for disaster disguised as a solution.

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it will have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
Why now I gotta subsidize your tiny home? Listen, I
don't have any problem with your tiny home. I don't
have any problem with tiny homes in general. I think
that there's shows on HGTV about tiny homes. But now
now Congress is putting forth a bill which the government
is going to back, government backing for second mortgages to

(00:41):
finance construction for tiny homes that people can put in
their backyard. What Yeah, this bill aims to boost building
of They're call me accessory dwelling units ADUs in a
new effort to tackle the nations severe housing shortage. He's

(01:01):
not a severe housing shortage. Okay, that's the biggest bunch
of bs going. Okay. These add ons are small studio
style of housing units, usually between six hundred and twelve
hundred square feet, that can supplement an existing home in
the backyard, garage, or basement. Uh huh uh huh again.

(01:25):
California California and New York. Okay, I want to get
involved with this. You got Sam Lecardo, he's a Democrat
from Californio, and Andrew Garbarino, he's a New York Republican,
said the federal government is waited too long to tackle
the housing affordability issue. It's a pressing issue for Americans

(01:48):
right now. There's one point four million single family homes
in the United States that have these units. They're getting
more popular because homeowners seek to seek ways to lower
their housing costs by building and renting out units like these.
Others build them to house adult children or grandparents. Uh huh, Okay, listen,

(02:14):
I I'm someone. Okay. My in laws have lived with me,
my father in laws along with us, My mother and
laws and lives with us. Oh geez, twenty years plus,
twenty years plus in law apartments. I get all that

(02:34):
I've had. You know, they've had their separate areas. I've
bought houses so to accommodate them. I also lived on
Long Island again, very you know, expensive when it comes
to property taxes. Some of these neighborhood but let me
tell you something, Okay, I wouldn't want people all of
a sudden putting up tiny homes in their back yard

(02:58):
and quite frankly, good luck, good luck getting that through zoning.
For crying out loud, you know I had. I was
limited in the size shed I could put in my backyard.
And there's reasons behind this. Roads can only handle so much,
school districts can only handle so much. This is a disaster. Okay,

(03:23):
But nope, nope, nope, they're all for it again. State
and city government see them as a way to create
more places for people to live faster than building full size,
multi family properties. Yeah, okay, let's you know, let's let's
make let's make neighborhoods ugly again. How does that sound.
I'm sorry, you know, I get it if you've gotten

(03:44):
more than enough property, I mean, you got to have
a lot of property to do something like this. This
is nuts to me. Again, Why and why in the world. Okay,
you want a tiny home, you want a tiny home
though you want to rent out. Why the hell do
I have to subsidize that crap? Well? Why is the

(04:06):
government got a step in and back these loans. I
don't get it, I really don't. And again I'm telling
you right now, this is gonna tick a lot of
people off in Manny neighborhoods. Like I said, good luck,
good luck, put these up and am That's what I want.

(04:27):
My entire neighborhood flooded with tiny homes in people's backyards.
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