America has a housing supply problem. Most people agree on the diagnosis. Almost nobody agrees on the cure. Recent discussions in Washington over housing affordability and institutional investors are the perfect example.
Alex Cartwright thinks the cure is hiding in plain sight — in the lobbies of distressed hotels that nobody wants anymore.
Welcome to Episode 7 of From Ideas to Innovation. Alex is the co-founder of HotelShift, a real estate company converting distressed hotels into affordable multifamily housing. He’s also a former economics professor who spent years teaching price theory — and then decided to live it.
This conversation is one of the most practical, grounded explorations of housing economics this podcast has produced. If you care about affordability, entrepreneurship, or what it actually looks like to transform academic insight into a real-world business, this episode is for you.
About This Episode’s Guest
Alex Cartwright didn’t leave academia because he was unhappy. He left because he saw a free market solution to the housing problem that was too compelling to ignore.
As an assistant professor of economics, Alex was winning teaching awards, taking students abroad, serving as department chair, and living what he describes as “the life of the mind.” He also happened to be working on real estate projects on the side for personal financial security and intellectual curiosity.
Then someone at a conference pointed him toward a distressed hotel in Michigan and said it might be convertible to multifamily housing. But despite thinking that idea sounded like a terrible pain to execute, Alex went to look at it anyway.
When he sat down to run the numbers he discovered a $35,000-per-room hotel didn’t sound so bad in a market where multifamily buildings sold for $300,000 per unit. He sat down and put prices on all the problems. The math worked — and a business was born.
Today, HotelShift acquires distressed hotels, converts them into affordable apartments, and builds the kind of housing that the market desperately needs but rarely produces. Alex brings to that work something most real estate developers don’t have: a deep academic grounding in free market economic thought — and the firsthand experience to know when theory matches reality.
What You’ll Take Away
* Why America is chronically undersupplied on housing
* What academics could learn from talking to the industries they study — and what entrepreneurs could learn from going back to first principles
* What theories explain why building codes only ever get stricter and more expensive and the systematic bias toward luxury housing
* How Hotel Shift’s cap rate arbitrage works — and why the gap between hotel and multifamily valuations creates a durable, scalable opportunity
* What factors actually kill real-estate deals
* How one policy change would unlock more affordable housing overnight
Cross-Sector Connection
Alex didn’t just study housing economics — he built a business around it. And in doing so, he became a living example of what happens when academic insight meets entrepreneurial execution.
Researchers and academics spend careers studying housing affordability, zoning reform, and price theory. Alex’s story is a direct challenge to stay connected to the industries they study. He shares how firsthand experience of markets shapes worldviews in ways that academic models simply can’t replicate, and the best policy research accounts for that gap.
Policymakers are often the biggest obstacle to the very solutions entrepreneurs like Alex try to build. Parking minimums, impact fees, energy retrofit mandates, and quiet resistance to affordable rezoning all show up in this conversation as real-world deal killers. Alex highlights a Texas law that allows commercial properties to be rezoned for housing by right is a replicable model that any state or city could adopt tomorrow to address this crisis.
Business leaders and entrepreneurs might recognize themselves in Alex’s description of entrepreneurship as getting punched in the face multiple times a day and coming back anyway. They also will appreciate his framework for identifying durable market inefficiencies, building a niche around solving them, and creating a business that the market won’t easily arbitrage away.
The conversation doesn’t end here. I hope it sparks your curiosity and gives you a place to start some cross-disciplinary dialogue.
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