Marc Andreessen's plan to solve the housing crisis could actually make it worse
in July. Just a few weeks later, Neumann is now the recipient of the largest single check Andreessen Horowitz has ever handed out in a funding round. The investment values Flow at $1 billion — before it even gets off the ground.the investment, Andreessen declared,"Our nation has a housing crisis." Not enough houses are being built, he explained, and as a result, rents are rising.
I don't think many renters would relate to his portrayal of renting, but that won't stop Andreessen and Neumann from trying to transform the conditions of renters' lives without actually asking whether they've properly identified the problem or whether their perceived solutions will help with anything meaningful.
There's little information in Andreessen's blog post about how Flow will work, but according to the limited reporting, it seems that most of the focus is on branding and managing properties. In January, The Wall Street Journalthat Neumann was beefing up his real-estate portfolio by buying up majority stakes in apartment buildings, with roughly 4,000 units valued at over $1 billion in cities across the US, including Miami, Atlanta, Nashville, Tennessee, and Fort Lauderdale, Florida.
. It sold young professionals a future of"coliving" that was little more than upscale youth hostels with some additional amenities — though it was also possible to rent individual units at around $3,000 for a one-bedroom apartment. Is the WeWork approach really going to solve the housing crisis? We can be quite unequivocal: It will not.
What Flow really appears to be doing is slapping a tech branding on one of the biggest problems that's arisen since the 2008 recession: the rise of corporate landlords, particularly private-equity firms. A ProPublicapublished in February found a significant increase in the concentration of apartment ownership, as large firms had bought up more of the market.
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