Recognizing that “rents are going up much faster than the incomes” in places like New York and Los Angeles, Secretary of Housing and Urban Development Ben Carson recently told NPR that cities need to move “away from the concept that only the government can solve this problem by throwing more money at it.” In response, Portland’s Mayor Ted Wheeler tweeted, “Secretary Carson, if you don’t think gov’t can provide solutions, then you should step aside and allow someone up to the task to lead.” Apparently, in Oregon it is an apostasy to think that any problem can’t be solved by throwing tax dollars at it.
This is particularly ironic when Portland is now suffering cost overruns on its so-called affordable housing projects comparable to those for its light-rail projects. One project that was supposed to cost $200,000 per unit is coming in at $285,000 per unit–a 42.5 percent overrun. Wheeler proudly tweeted that the city just approved another project with 203 units of so-called affordable housing. Because home prices in a market of nearly 820,000 homes are going to be significantly influenced by the subsidized construction of 203 more–Not!
As the Antiplanner previously noted, “affordable housing is not the same as housing affordability.” Affordable housing is government subsidized housing for people too poor to afford housing. It is not intended or expected to influence the overall housing market because it does nothing about the underlying conditions that have made housing expensive in the first place. The problem in Portland, and the entire West Coast, is that housing is unaffordable to almost everyone, not just the very poor, and the only real solution for most people is to move away. Continue reading
