The Local Tradeoffs That Can Address the Housing Crisis
Sep 11, 2023
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This podcast discusses the American housing crisis and the need for local solutions. It explores factors affecting the housing market, such as low mortgage rates and housing policies. The speaker advocates for local political solutions and a policy framework to address resistance to new housing developments. They also explore small lot reform and simplifying zoning as potential solutions. The episode highlights the inefficiencies of current zoning codes and suggests a shift towards planning to address the housing crisis.
The housing crisis in the United States is not just about affordability but also about the lack of housing construction, which requires local political solutions and incentives for homeowners to support increased building.
To address the housing crisis, key policy measures include implementing small lot reform to enable the construction of multiple houses and simplifying zoning regulations to allow for increased density, while still giving neighborhoods the option to opt-out of densification through private contracts.
Deep dives
Local solutions for the housing affordability crisis
The housing affordability crisis in the United States is a local problem that demands local solutions, according to Greg Brooks of The Better Cities Project. Many Americans wrongly believe that their homes should increase in value each year, leading to a crisis in the housing market. The key issue is not a housing crisis but a building crisis. While developers understand the demand for housing and know how to build homes, there is widespread resistance at the state and local levels. The solution lies in implementing policies that promote greater density, streamline zoning regulations, and provide incentives for homeowners to support increased housing construction.
Addressing the problem of limited housing mobility
The housing affordability crisis is exacerbated by a decline in housing mobility. People are not moving as frequently due to the lack of affordable options. Local and state housing policies have contributed to consistent and rapid increases in housing prices, creating sudden spikes in certain areas. Some states fail to acknowledge the problem, believing that rising housing prices reflect economic growth. However, the reality is that the shortage of new housing construction is the primary cause. Solving the crisis requires local political solutions, aligning incentives for greater density, housing project certainty, and innovation while addressing the concerns of homeowners.
Policy recommendations for solving the housing affordability crisis
To address the housing affordability crisis, Greg Brooks suggests implementing two key policy measures. First, small lot reform should be adopted to allow the subdivision of larger lots, enabling the construction of multiple houses and providing homeowners with a way to tap into their equity. This would also help combat resistance from NIMBYs (Not In My Backyard) by giving homeowners a financial incentive to support housing developments. Second, zoning regulations should be simplified to allow for increased density at the local level. However, neighborhoods should have the option to opt-out of densification through private contracts. Additionally, streamlining zoning codes and reducing discretionary decision-making processes can help shift the focus from zoning to planning as the primary land use policy activity.
The American housing crisis was largely created by local governments. Fixing it demands local innovation. Greg Brooks of the Better Cities Project details some local fixes to address the mismatch between supply and demand in American housing.