The Indicator from Planet Money Can American cities grow AND stay affordable?
45 snips
Dec 15, 2025 
Dennis Madsen, an urban planning manager in Huntsville, Alabama, and Yona Freemark, a researcher at the Urban Institute, delve into the challenges of city growth and housing affordability. They discuss how cities like Austin have faced steep housing costs due to rising demand. Madsen shares insights on Huntsville's proactive approach to increasing housing supply and the importance of diversifying housing types. They highlight the critical role of zoning and the need for subsidies to support low-income renters amid ongoing development.
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Local Life And Housing Cost Example
- Rachel Ramos and her daughter feed ducks in Huntsville and Rachel pays $1,250 for a three-bedroom apartment.
- She finds Huntsville cheaper than places she lived like Montana and Florida, but worries prices will rise with growth.
Affordable Cities Attract Price Pressure
- Growth driven by low prices creates a feedback loop that raises housing costs as newcomers arrive.
- Many cities face this paradox where affordability attracts demand that then erodes affordability.
Rapid Growth Can Triple Home Prices
- Austin transformed from relatively isolated to a booming job center and saw housing costs surge.
- Home prices in Austin have more than tripled over two decades, outpacing national increases.