MIDDLE CLASS TAKES THE HIT
The affordable housing crisis going on in the United States is being scratched in a bad way. It is nothing new. The more government entities try to solve the problem with well-meaning policy, the worse they make it. I’m not against the government trying to help. But please, think through the ideas you come up with.
Government entities at city, state, and national levels are creating higher density zoning. On the surface it sounds good. More residential units, more inventory, should lead to lower housing costs. Or at least slow down the price escalation.
The problem is the higher density is mostly in the form of rentals. Condominiums being sold to individuals has become too big of a legal liability for the developers. Most high density built today is in rentals.
Rents may come down in the short run. But it is at the cost of single-family homes becoming a scarcer commodity. The end result is life-long renters. Is that a good idea?
According to the National Real Estate Post, The Housing Market is Rigged Against Home-Buyers. Brian Stevens and his daily report explains. WATCH
Relevant Articles:
- The Affordable Housing Crisis: Causes and Solutions
National Public Radio: Affordable Housing - How Government Policies Affect Housing Affordability
Brookings Institution: Housing Affordability - The Impact of Rising Housing Costs on the Middle Class
Pew Research Center: Housing Costs
