The Answer Is Transaction Costs
All Housing is Affordable Housing
Aug 13, 2024
Join Vicki Been, a leader in housing regulation, Ingrid Gould Ellen, an urban planning expert, and Katherine O’Regan, a researcher on housing and socioeconomic issues, as they dive into the complexities of housing affordability. They discuss how well-meaning regulations can actually push developers towards luxury housing, making affordable homes harder to come by. The trio challenges misconceptions about new housing impacts and underscores the need to remove barriers for better market pricing, ultimately advocating for increased supply to make all housing more affordable.
24:29
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Quick takeaways
- Regulatory hurdles significantly impede new housing developments, raising costs and limiting supply, which exacerbates affordability issues for potential homeowners.
- Allowing the construction of new housing units can alleviate market pressures and counteract gentrification by expanding overall housing availability.
Deep dives
Understanding Housing Shortages
Housing shortages are increasingly problematic, with estimates indicating that millions of housing units are lacking in the U.S. The four key factors affecting housing availability include location, size, quality of fixtures, and price, all of which are interrelated and complex. A significant claim presented is that all housing can be considered affordable if new units are legally allowed to be built, opposing the notion of needing subsidized or controlled affordable housing. The existing system constrains price adjustments, preventing supply from meeting demand, which exacerbates shortages.
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