Over the past decade, I’ve listened to a steady stream of people step
forward with new ideas, new systems, and new promises to finally make housing
affordable. Every conference, every convention, every magazine article, every
podcast seems to showcase “the solution.” But after all the noise—have any of
these efforts made a real foothold in delivering more than a token amount of
real-life housing?
The federal government is now trying to step in, streamlining zoning,
codes, and a host of other roadblocks that they believe stand in the way. On
paper, it sounds good. In practice, it’s another layer of promises that may or
may not deliver. Industry spokespeople keep repeating their lines about faster,
cheaper, more efficient ways to build—but where’s the proof? Where are the
neighborhoods full of truly affordable homes?
What’s Driving the Crisis—Costs or Stagnant Wages?
Part of the challenge is untangling what’s really happening. Is it that
the cost of building new homes has skyrocketed, making it impossible to bring
them to market at an affordable price? Or is it that household earnings have
remained stagnant while home prices keep climbing? The truth is likely a mix of
both—and neither side is showing signs of easing anytime soon.
A Losing Battle for Most People
For the average family, the affordability gap keeps widening. Too often,
the only “affordable housing” being built is affordable in name only—units that
look good on a press release but do little to dent the larger crisis. And while
developers, lenders, and policymakers continue to debate what “affordable” even
means, millions of people are left out of the market entirely.
Do We Need to Rethink the Definition?
Here’s a thought that may ruffle feathers: what if we simply raised the
affordability benchmark? For decades, the standard has been that housing should
cost no more than 30% of annual income. But maybe that ship has sailed. What if
the new threshold became 40% or even 45%? Wouldn’t that satisfy both mortgage
companies and government officials, giving them cover to declare progress and
move on to the next big issue on their agenda?
It’s not the solution anyone wants, but at the rate we’re going, it might
be the only way many people will ever own a home again.
The Hard Truth
Until someone proves that their “new way” can actually produce homes at
scale—affordable homes that people can live in, not just admire in a prototype
village—the battle will continue to feel like a losing one. The talk is
endless, the promises keep coming, but the results are still too thin.
And the longer this cycle continues, the more likely “affordable housing”
will remain little more than a talking point.
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