Yoni Appelbaum, deputy executive editor at Atlantic, joins host Jerusalem Demsas to unravel the hidden drivers of America’s housing crisis. They discuss how local governments, despite a favorable public image, are exacerbating issues like rising rents and economic stagnation. Appelbaum highlights the disconnect between local voters and decision-makers, and how zoning policies stifle mobility and exacerbate the affordable housing shortage. The conversation also touches on the role of activist groups challenging these entrenched local policies.
Local government is a significant driver of the housing crisis, negatively affecting economic mobility and productivity in American cities.
The current housing crisis is intricately linked to inadequate supply and restrictive zoning laws that hinder necessary development.
Reforming housing policies may require shifting decision-making from local authorities to centralized systems to better address community needs.
Deep dives
The Gradual Decline of Democracy
Democracy often erodes subtly rather than through overt political upheavals. The hosts emphasize that, in the contemporary U.S., signs of autocracy are already apparent, reflecting a gradual decline where norms and institutions are undermined over time. This situation is exacerbated by factors such as the concentration of power, the erosion of civil liberties, and widespread disillusionment with democratic processes. Thus, monitoring and addressing these trends is crucial to preserving democratic values.
Housing as a Fundamental Crisis
The housing crisis in America is portrayed as a multi-faceted issue that goes beyond mere affordability, influencing economic productivity, health outcomes, and societal stability. The hosts argue that where one lives directly impacts access to education, employment opportunities, and overall quality of life. Broken housing markets not only affect individuals but also undermine communities by destabilizing social networks and support systems. As such, addressing the housing crisis is vital for restoring democratic integrity and fostering social cohesion.
The Breakdown of Local Housing Markets
A critical insight revealed is that American housing markets are failing due to a lack of adequate supply in the most productive cities to support economic growth. Over-protected zoning laws and exclusionary practices have stunted housing development, leading to a disconnect between job creation and living opportunities. The conversation delves into how ineffective local governance contributes to this crisis, limiting real estate development while enabling favoritism towards established homeowners. Ultimately, effective solutions will require reevaluating local policies that inhibit housing production.
The Role of Local Government Accountability
The podcast highlights how local governments play a vital role in perpetuating housing issues, with decision-making processes often disconnected from the communities they represent. Local governance is characterized by lower voter engagement and influence from special interest groups, leading to policies that prioritize the wishes of a few over community-wide needs. This lack of accountability results in missed opportunities for growth and infrastructure improvements that could alleviate housing shortages. Reforms must address this accountability gap to better reflect the voices of all community members.
Challenging Local Governance for Housing Reform
The hosts suggest that meaningful change in housing policy may require moving decision-making powers away from local authorities to a more centralized system. This shift could help facilitate quicker responses to housing crises and promote development that meets broader community needs. By reducing the number of overlapping jurisdictions, the complexities that currently stymie housing initiatives may be simplified, leading to improved access and affordability. Ultimately, a systemic approach is necessary to address the fundamental issues that hinder housing development in America.
Americans love local government. In a December 2023 Pew Research survey, 61 percent of respondents had a favorable view of their local government while 77 percent had an unfavorable view of the federal government. But behind this veneer of goodwill is a disturbing truth: Local government is driving a housing crisis that is raising rents, lowering economic mobility and productivity, and negatively impacting wages.
Host Jerusalem Demsas talks to Atlantic deputy executive editor Yoni Appelbaum and Yale Law professor David Schleicher about how local government is fueling the housing crisis.
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