The 3-Week Dream vs. The 5-Year Nightmare
If you have ever wondered why there aren’t enough houses despite all the land we have, Michael Ruge has the answer, and it might make you want to throw a stapler at the wall. According to Michael, the biggest villain in the housing crisis isn’t just interest rates—it’s bureaucracy.
He points out that 40 years ago, a developer could get approvals for a project in about three weeks. Three weeks! Fast forward to today, and getting the green light from municipal offices can take five years. Five years! How can we possibly keep up with population growth when it takes half a decade just to get permission to dig a hole?
Finance and Friction: The Two-Headed Monster
Michael Ruge breaks down the root of the problem into two simple buckets. First: Finance. The financial world is currently set up for the “big boys.” Small and medium builders can’t get the sweetheart interest rates that the massive corporations can. Michael admits he spends 70% of his time just trying to fund projects, rather than actually building them.
Second: The municipalities. He calls out the endless checklists that cities demand. Instead of focusing on the 20 necessary items, bureaucrats add 80 extra pointless ones. His advice to young builders? “Don’t fight city hall.” If a zone is fighting you, walk away. Go to where the city wants you to build. He shares a brilliant example in Regina where the city was literally paying up to $40,000 a door in credits to attract developers. The solution to the housing crisis isn’t just building cheaper; it’s cutting the red tape that slows us down. Michael Ruge is leading the charge by simply refusing to fight losing battles.
Video courtesy of The 5 Questions Podcast with Mario Lamarre
Links to Michael Ruge, Affordable Apartments and his Initiatives:
Across Continents and Cultures: The Mongol Rally Adventures of Elly and Michael Ruge
Michael Ruge and Affordable Apartments: Building a Better Cowichan Valley
Across Africa and Back Again: The Trans-Africa Rally Adventures of Elly and Michael Ruge
Michael Ruge: The Entrepreneur and Consultant Empowering Businesses Worldwide
