The unfortunate reality is that some of this may be true. Building in danger zones where the home will need to be replaced in 10-20 years is an awful investment on a 30 year mortgage. If the property is untenable after 20 years then the owner is out a good chunk of money.

This isn’t a big deal when property is cheap and can be paid off within 5-10 years, and rebuilt. But housing has become dramatically more expensive relative to cash flow than it has been historically.