Joe Cortright wrote this article in the “City Observatory” on March 21, 2023. The full text of the article can be found here.
The article “Housing affordability? Localism is the problem, not the solution” by Joe Cortright discusses the ongoing housing crisis in the United States and critiques the concept of localism in land use planning as a significant contributor to the problem. Bruce Katz, the author of “The New Localism,” has called for a national commission to address housing affordability, which Cortright acknowledges as a necessary discussion but argues that localism is a major barrier to finding effective solutions.
Cortright highlights the symptoms of the housing crisis, including a shortage of housing, rising prices and rents, increased un-affordability, and rising homelessness. However, he points out the irony in advocates of localism calling for a national solution, as localism has historically allowed municipalities to impose zoning and building regulations that restrict housing development. This has led to a situation where local governments prioritize local control over the need for increased housing supply, effectively making it illegal or impossible to build enough housing to meet demand.
The article emphasizes that localism, while beneficial for some local issues, has become detrimental to housing affordability. Local governments often use zoning powers to exclude lower-income residents and limit the construction of affordable housing, contributing to economic segregation and concentrated poverty. Cortright argues that the solution to the housing crisis requires reducing local control over land use and empowering state governments to enact policies that promote housing development.
He cites examples from states like Oregon, Washington, and California, where legislation has been passed to limit local governments’ ability to exclude housing through zoning. These state-level reforms have provided the necessary political cover for local governments to innovate and increase housing supply. Cortright argues that a higher level of government intervention is essential to overcome the “beggar-thy-neighbor” mentality that local governments exhibit, where no one wants to allow denser development for fear of bearing the burden of growth alone.
The article also critiques the misconceptions surrounding housing affordability, such as the belief that building more market-rate housing increases prices. Cortright argues that the housing crisis has evolved due to new technologies, investors, and corporate landlords, leading to a situation where private capital can extract higher rents with minimal risk. He warns against scapegoating institutional investors for the crisis, as this distracts from the root causes related to localism and zoning regulations.
Cortright concludes that while a national commission could help debunk false narratives about housing affordability, there is a risk that localist interests could perpetuate these myths. He suggests that the commission could explore alternative wealth-building strategies for renters, as the current focus on homeownership as a wealth-building scheme is insufficient for a significant portion of the population.
In summary, the article argues that localism is a primary cause of the housing affordability crisis in the U.S. and that effective solutions will require state-level intervention to reduce local control over land use and promote the development of affordable housing.