Today, we see endless suburban sprawl and no shortage of stories about the U.S. affordable-housing crisis. So, why aren’t there enough homes yet?
The story is one of “artificial scarcity,” in which there are plenty of means to close the affordable-housing gap, but scarcity is created by investment companies buying up homes. Investors own 20 percent of single-family homes in the United States. Loopholes in the U.S.
Housing in the United States (and in many other nations) is plagued by many problems and shortcomings. Among the most critical are increasingly unaffordable prices and bewildering geographic cost variations. Connected to these are additional problems associated with forced sprawl, the needless destruction of vital ecosystems, and labor market rigidity.
The residential cost problem is paramount and can no longer be dismissed as a predicament limited to isolated markets.
In the ongoing and increasingly heated discussions about housing, urban planning, and zoning, I often return to Greta Thunberg’s seething indictment of our world’s decision-makers: “Here we are at the beginning of a mass extinction, and all you can do is talk about money and fairytales of eternal economic growth.”
Greta may have been directing her remarks to politicians at the highest levels of government; but, neither should we forget as former Speaker of the House Tip O’Neill once famously remarked,