Category Archives: Housing

A new report on housing decries the fact that many unaffordable housing markets have gotten even less affordable in the last few years. The report’s solution is in the name of the organization that published it: Up for Growth, as in “grow up, not out.”

Click image to download a 24.0-MB PDF of this report.

The reports calls for cities to identify what neighborhoods to build in, “the appropriate increase in density for each location,” and the “optimal housing mix,” in other words, the mix of single-family vs. multifamily housing, for each neighborhood. Where people actually want to live and whether they prefer to live in single- or multifamily housing are not to be considered. Continue reading →

Affordable housing projects aren’t making housing more affordable. In fact, says a new study by an MIT economist, construction of new subsidized housing displaces new unsubsidized housing for little net gain in the housing supply. Specifically, the study found, ten new subsidized housing units resulted in eight fewer unsubsidized units.

This is supposed to be an affordable housing project, yet it is already unaffordable because it is six stories high, which costs at least twice as much to build, per square foot, as two-story construction.

Between 1950 and 1986, most subsidized housing was built by government agencies. In 1986, a Republican Congress sought to “privatize” the construction of subsidized housing by giving developers tax credits if they promised to rent their housing at below-market prices for 30 years. Today, low-income housing tax credits worth around $10 billion a year are given to the states to hand out to developers. To see how well this program is working, economist Evan Soltas looked at hundreds of projects built with tax credits. Continue reading →

Early this week, Grassroot Institute executive director Keli’i Akina interviewed the Antiplanner about affordable housing, why it costs more than regular housing, and why the Hawaii Housing Finance & Development agency refuses to release records that would help the public understand where their money is going. The interview was posted on YouTube late Wednesday evening.

Affordable housing is a nationwide scam and Hawaii is far from the worst offender. As the state with the second-least-affordable housing in the nation, however, local politicians are prone to promoting affordable housing subsidies as the solution to housing affordability problems, which doesn’t work as they are two different issues. The Antiplanner suggests that affordable housing subsidies should solely be in the form of vouchers directly to low-income people, not subsidies to developers who build costly projects at taxpayers’ expense.

“After a decade of building 8,000 apartments in Oakland, market rate 1-bedroom units are now affordable to low income people,” says a Bay Area writer named Joshua Davis. The implication is that the 8,000 apartments had something to do with Oakland become more affordable. It didn’t.

Cities all over the country are building apartments, many of them subsidized with so-called affordable housing funds. The mid-rise and high-rise apartments that aren’t subsidized aren’t going to rent for affordable prices because they are far more expensive to build than single-family homes. Continue reading →

Here’s evidence, if anyone needs it, that rent control contributes to housing scarcity: a new report says that more than 13,000 rent-controlled apartments have been vacant for at least two years. Nearly 90,000 rent-controlled apartments were vacant in 2021 and more than 60,000 were still vacant in 2022.

Manhattan apartment building. Photo by David Merrett.

When people leave a New York City rent-controlled apartment, landlords are allowed to raise the rent for the next occupants by $89 a month. Too often, that’s not enough to pay for the repairs and other work needed to make the apartment attractive to new renters. As a result, the apartments sit vacant, waiting for the owners to sell or, less likely, for the rent control law to be repealed. Continue reading →

A math-challenged report finds that homes in the San Francisco Bay Area are still selling above their asking price despite census data showing that the region’s population is declining. The report says that Vallejo (which is part of the San Francisco Bay Area but the Census Bureau counts as a separate urban area) “is the number one metro area for selling homes over the list price,” followed by San Francisco and Rochester, New York.

This 1,020-square-foot house on a 4,800-square-foot lot is offered for sale in Vallejo for $499,000, but if recent experience is any guide it will actually sell for around $536,000.

The report says that homes in Vallejo typically sell for 1.07 percent more than their asking price and homes in San Francisco sell for 1.03 percent more than their asking price. However, this is wrong: what the report means is that homes in Vallejo sell for 1.07 times their asking price (which is 7 percent more) and homes in San Francisco (meaning the San Francisco-Oakland urban area) sell for 1.03 times their asking price (or 3 percent more). Continue reading →

Due to the large number of people seeking to move during and after the pandemic, the number of severely unaffordable housing markets quintupled between 2019 and 2022, says a new report from demographer Wendell Cox that traces the changes in housing affordability in 174 major U.S. housing markets. Of those 174, Cox classified 44 as affordable in 2019, but only 11 were still affordable in 2022. The good news is that’s a slight improvement over 2021, when only 9 were affordable.

Click image to download a 3.1-MB PDF of this 28-page report.

Cox measures affordability by comparing median home prices with median household incomes. This is slightly different from the Antiplanner’s comparison of median home prices with median family incomes. Both of us consider housing to be affordable when median prices are less than three times median incomes and severely unaffordable when median prices are more than five times median incomes. Continue reading →