Spencer Gardner wrote this article in “Strong Towns” on May 9, 2017. The full text of the article can be found here.
The article discusses the complexities surrounding affordable housing, emphasizing the need to understand the underlying principles that govern its availability and cost. It introduces the “5 Immutable Laws of Affordable Housing,” which outline key factors that influence housing affordability.
- Developers Don’t Pay Costs: The first law states that developers typically pass construction costs onto tenants and buyers. If development becomes more expensive due to regulations or a lengthy permitting process, these costs ultimately make housing less affordable for individuals.
- Regional Housing Demand: The second law highlights that housing demand is not confined to local neighborhoods; it is regional. Even if a neighborhood restricts growth, people will still move to the city, leading to development at the outskirts, often resulting in longer commutes and environmental concerns.
- Zoning and Building Codes: The third law points out that zoning and building codes that mandate expensive housing contribute to high costs. Many zoning regulations impose minimum sizes for lots and dwelling units, which do not accommodate affordable construction types.
- Transportation Costs: The fourth law asserts that affordable housing cannot be deemed affordable if transportation costs are high. Development in areas with cheap land but poor transportation infrastructure can lead to increased overall living expenses.
- Historical Context of Housing: The fifth law notes that what is considered affordable housing today was once luxury housing in the past. Many older neighborhoods that now provide affordable options were once desirable locations for the middle class.
The article also proposes three strategies for cities to improve housing affordability:
- Reduce Minimum Lot Sizes: By decreasing minimum lot sizes and relaxing density restrictions, cities can lower land costs, which are a significant portion of housing expenses. Allowing for more units on a single lot can spread land costs across multiple households, making housing more affordable.
- Fix Zoning Issues: The second strategy emphasizes the need to address zoning regulations that create artificial scarcity. If by-right development is economically unfeasible due to zoning, it discourages smaller developers from entering the market, leading to a reliance on larger developers who may create expensive housing.
- Active Role in Housing Provision: The third strategy suggests that local governments should take a more active role in providing affordable housing. While enabling private developers to build is important, local governments can directly assist those in greatest need, such as the chronically homeless, through public housing initiatives.
The article concludes by acknowledging the limitations of government budgets and the allure of regulatory solutions like Inclusionary Zoning. However, it stresses that cities should focus on not creating additional barriers to housing development. By addressing obstacles to building new housing, cities can help alleviate the affordability crisis rather than exacerbate it. Overall, the article advocates for a balanced approach that combines private development with proactive government involvement to tackle the multifaceted issue of housing affordability.