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Build, Baby, Build’: A New Mantra for Housing Policy
As we look ahead to potential changes in leadership, many are wondering about the future of housing policy in America. While past administrations have made efforts to address housing issues, the fundamental problem of supply shortage remains largely unresolved.
Kamala Harris’s Background in Housing
Vice President Kamala Harris gained experience in housing finance after the 2008 financial crisis, leading efforts on settlements with mortgage servicers during her time as California’s Attorney General. While this experience gives her insight into the industry, it doesn’t directly address the critical issue of housing supply.
The Biden Administration’s Approach
The current administration has implemented several initiatives aimed at addressing the affordable housing shortage:
- Adjusting rules around the Low-Income Housing Tax Credit (LIHTC) program to facilitate mixed-income housing development.
- Creating new HUD grant programs to remove barriers to housing production.
- Repurposing federal land for affordable housing construction.
- Addressing commercial-to-residential conversions.
However, these efforts face significant challenges.
The Limitations of Federal Intervention
The federal government has limited tools to directly impact housing production, as many crucial policies are administered at the state and local levels. Past attempts to tie block grant funding to local zoning changes have sometimes backfired, making it more difficult to build new housing, especially in single-family zones.
The Mixed-Income Housing Dilemma
While mixed-income housing developments are often touted as a solution, they can create a “hunger games” scenario where a small number of affordable units are distributed via lottery among a large pool of applicants. This approach may patch the problem but falls short of a comprehensive solution.
Commercial-to-Residential Conversions: A Double-Edged Sword
The idea of converting vacant commercial properties into residential spaces is gaining traction. However, this approach raises numerous questions:
- Who will finance these conversions?
- How will it impact community layouts and services?
- What about zoning and homeowners’ associations?
- How will it affect the character of neighborhoods?
While this strategy could utilize existing vacant properties, it would fundamentally alter the fabric of many communities.
The Need for a New Approach
Current solutions like tax credits, multi-use developments, and down-payment assistance programs have inherent limitations. They often benefit only high earners and fail to prevent investors from acquiring properties, potentially exacerbating disparities in under-served and minority communities.
A Call to Action: “Build, Baby, Build”
What we truly need is a national commitment to increasing housing supply. Just as “Drill, baby, drill” became a rallying cry for energy production, we need a “Build, baby, build” mentality for housing. This approach could address not only the housing crisis but also contribute to solving various other national issues.
Conclusion
Addressing the housing crisis requires more than piecemeal solutions. We need a comprehensive strategy that focuses on dramatically increasing housing supply across all sectors. Only by tackling the root cause – lack of available housing – can we hope to create a more equitable and accessible housing market for all Americans.
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