The problem of housing affordability in the U.S. can’t be solved by the free market, wrote Kyle K. Moore and Adewale A. Maye for the Economic Policy Institute. Instead, they wrote, an equity-focused policy is key.
The soaring cost of homeownership is driving up the cost of rental units, with the Consumer Price Index showing that the price of renting a primary residence has increased 67% since 2009, with nearly 50% of that occurring in the past five years. Additionally, a house is a major source of net worth, so families—particularly Black families—aren’t quite able to access that wealth-building asset.
The free market approach can’t solve problems because landlords aim to maximize their revenue potential by targeting tenets with higher, more stable incomes or by neglecting maintenance and improvements on less-expensive rental units. Additionally, the government hasn’t done enough to regulate the rental market, making tenants susceptible to unbearable rent increase, unsafe living conditions and housing insecurity.
America should develop policies that provide access to “the fundamental human need of shelter in a way that is economically sustainable and equitable.” The most direct method of fixing the housing supply shortage is federally funded, energy-efficient, safe housing construction. The approach should also include revising zoning laws to allow for more residential construction, particularly multifamily housing, and implementing rent control measures.
