In looking at the housing discussion in the United States, it is clear that the “crisis” talk has only increased over the years. Various trends that contribute to this issue have persisted, such as the reliance on outdated zoning laws and the promotion of new technologies as solutions to the housing scarcity problem. While changes in zoning laws may be necessary, they are not sufficient to address the root of the issue. Abolishing zoning altogether may be the only real solution to housing scarcity, but it is a complex and long-term process that requires immediate action.
The concept of the 30-year mortgage as a means of achieving homeownership is also brought into question, especially in regards to its inequitable impact on Black and Native families. Mortgages do not work for everyone, and they only build wealth in certain market conditions. It is important to critically examine the 30-year mortgage and explore new ideas that can promote homeownership and wealth-building for all individuals, regardless of race or socioeconomic status.
The Low Income Housing Tax Credit (LIHTC) has also been a topic of discussion, with expenditures on the credit increasing significantly over the years. However, the cost burden of housing in the United States has also increased, indicating that simply dumping more money into housing does not solve the underlying issue of housing scarcity. Instead of increasing spending on LIHTC, there needs to be a focus on creating more housing units to meet the growing demand and reduce cost burdens for individuals.
Despite the ongoing housing crisis, the public remains confused about how to effectively address the issue. Measures such as passing billion-dollar property taxes for housing have not had the desired impact, as seen in Seattle where the housing crisis persists despite significant spending. There is a lack of understanding among the general public about how the housing market works, leading to misguided efforts to address the problem through increased spending rather than addressing fundamental issues in housing development and finance.
Efforts to reform the housing market are further complicated by the lack of collaboration between various stakeholders, including developers, financiers, and activists. Instead of working together to find solutions, there is often a focus on grievances and proposed legislation that may actually worsen the problem. Without a concerted effort to change the current approach to housing development and finance, the housing crisis is likely to continue worsening, with elected officials and the general public hoping for positive outcomes without addressing the root causes of the issue.
Overall, there is a need for a comprehensive and coordinated approach to addressing the housing crisis in the United States. This includes reevaluating outdated zoning laws, reconsidering the role of the 30-year mortgage in promoting homeownership, and shifting focus from spending on tax credits to increasing housing supply. It is essential for all stakeholders to work together to develop innovative solutions that address the underlying causes of housing scarcity and inequality, rather than perpetuating ineffective strategies that have not yielded positive results in the past.