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10/15/2019

How Can Government Make Housing More Affordable?

By Jenny Schuetz, The Brookings Institution
How Can Government Make Housing More Affordable?

How Can Government Make Housing More Affordable?

"The United States has two separate housing affordability problems."


What It’s About

Jenny Schuetz addresses the housing affordability crisis by examining how government policies at local, state, and federal levels contribute to scarcity and escalating costs. She emphasizes America’s twin housing crises: the self-imposed supply restraints of major housing markets, and the unaffordability of housing across the country to all of America’s poorest people. 

Upshot

Schuetz argues:

  • Local Rules Limit Housing Choices: Overly restrictive zoning regulations constrain housing supply, particularly needed apartments and multifamily dwellings, driving up housing costs
  • Federal Funding is Leverage: Tying federal dollars to local zoning reforms creates powerful incentives for cities to build more diverse and affordable housing options
  • Other Solutions Will Be Needed Outside of Major Metros: Reversing a downward trend in federal housing assistance can meaningfully improve affordability outside of major metros, where many of America’s poorest still struggle to pay rent

Did you know? Nearly half of American households that rent spent more than 30 percent of their income on rent in 2017. 

Read the Full Piece

Why It Matters

Schuetz helpfully breaks affordability issues down into two buckets with distinct solutions.

Who Wrote It

Jenny Schuetz was a Senior Fellow at Brookings Metro focused on housing policy. 

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