Why building more homes won’t solve the affordable housing problem

Abstract

The problem isn’t the supply of housing; it’s that millions of people lack the income to afford what’s on the market.

Even before 2020, the United States faced an acute housing affordability crisis.

The COVID-19 pandemic made it a whole lot worse after millions of people who lost their jobs fell behind on rent.

While eviction bans forestalled mass homelessness — and emergency rental assistance has helped some — most moratoriums have now been lifted, putting a lot of people at risk of losing their homes.

One solution pushed by the White House, state and local lawmakers, and many others is to increase the supply of affordable housing, such as by reforming zoning and other land-use regulations.

Covering the difference between what these renters can afford and the actual cost of the housing, then, is the only solution for the nearly 9 million low-income households that spend at least half their income on rent.