Sarahfitz2022
Nov 9, 2025
Research Papers / Buying a house ? Not a chance. [2]
The U.S Housing Crisis
Housing is a critical factor in economic stability, educational accomplishment, and quality of life. This foundation is increasingly fragile in the United States. "On a single night in January 2024, more than 650,000 people were experiencing homelessness, the highest number ever recorded," according to the U.S. Department of Housing and Urban Development (HUD) ("2024 Annual Homeless Assessment Report"). Millions of Americans confront skyrocketing rents or mortgage payments, and the housing crisis is among the severest social and economic challenges of our time.
To understand the true extent of today's housing crisis, we must first look back at what occurred in the wake of the 2008 crash. Prior to the Great Recession, "mortgage lenders provided millions of subprime loans to borrowers who couldn't afford them" (Federal Reserve History). When the bubble finally popped, "home prices plunged more than 20 percent, between April 2007 and late 2011" (Federal Reserve History), causing a wave of foreclosures and wiping out trillions of dollars in household wealth. Economist Naomi Zewde has observed that "the Great Recession wiped out wealth more for Black and Hispanic families, reversing generations of accumulated wealth" (Zewde). These differences have continued over time, leading to the long-term imbalances that are still being witnessed today in the housing market.
Even as the economy began to recover, homebuilding never caught up with demand. According to CBRE, "the housing supply gap that formed in the wake of 2008's Great Recession has widened to approximately 4.5 million houses." The economic recovery did not solve the problem, because housing supply continues to fail to keep pace with demand, and many people cannot afford to buy or rent.
The persisting housing crisis is a product of several structural problems, specifically, long-term undersupply, overly rigid zoning laws, climbing construction costs, speculation among investors, and flat wages. The U.S. Is Building More Housing Than Ever Before: So Why Does It Feel Like We're Not? Experts call the U.S. "a structural housing deficit." Quoting the Joint Center for Housing Studies (2025), "the nation has underbuilt by millions of units, especially at the lower end of the market." Those who earn moderate incomes cannot manage to secure affordable housing.
Many communities continue to 'zone out affordability' by imposing single-family zoning and caps on density (White House Council of Economic Advisers 2024). The Economic Report of the President tells us that "land use regulations have restricted supply, most dramatically in high-opportunity metros, driving up prices and increasing economic inequality" (White House/Treasury 44). Fresh efforts: Construction costs have recently spiraled out of control - "Since 2020, construction material prices are up over 35% while labor shortages delay projects - source CBRE" Source: CBRE Real Estate Investment Management. Such high costs render any new affordable housing projects unprofitable without charitable support or other incentives.
Institutional investors are snapping up single-family homes, making it difficult for first-time buyers to find options. "In many metro areas, investors make up as much as 20% of home purchases," the Wall Street Journal reported in a story on shrinking housing inventory for average families (quoted in Joint Center for Housing Studies).
Housing prices have soared far faster than wages. The National Low Income Housing Coalition (NLIHC) also reported that "in no state can a full-time minimum-wage worker afford even a modest efficiencies and rents" (2025 Public Policy Priorities 3). The affordability crisis is rooted in a spreading divide between income and housing costs.
It has caused huge social and economic damage, causing rent burdens, homelessness, and growing inequality. The 2024 HUD report stated that "the number of men, women, and children encountering homelessness increased by 18 percent over the 2023 figure" ("2024 Annual Homeless Assessment Report"). The U.S. Interagency Council on Homelessness (USICH) has connected this rise to the "expiration of pandemic-era assistance and an increasingly severe lack of affordable housing" (Homelessness Data & Trends).
Rental affordability has deteriorated in most of the country. The State of the Nation's Housing Report clarified that "more than half of all renters now spend over 30 percent of their income on housing, and almost one in four spend more than half" (Joint Center for Housing Studies 2025). These astronomical housing costs cause families to "restrict food consumption, reduce their cash assistance and/or social service use, forgo education or health care spending, reside in inadequate homes, or become homeless," trapping them in poverty (Joint Center for Housing Studies 2025).
The continuing housing crisis is leading to serious problems for younger generations, for teenagers hoping to get on the housing ladder." With home prices rising, wages stagnant, and student debt soaring, millennials and the dawn of Generation Z are finding it harder and harder to afford homes. A study by the Joint Center for Housing Studies states that "first-time homebuyers are priced out of major metropolitan areas, and many young people will never be able to afford the costs associated with being a homeowner without serious financial assistance" (JCHS, 2025). That could worsen wealth inequality between generations, as younger families have a harder time building equity and passing on wealth.
It's more than a financial problem. Systemic obstacles also confront young adults when they attempt to obtain credit and save for down payments. Colossally burdensome student loan debts can prevent would-be homebuyers from being eligible, and rocketing rents make it difficult for households to save. According to the National Low Income Housing Coalition, "increasing housing costs on top of high levels of debt create a nearly impossible situation for young adults to be able to access the housing market without targeted interventions" (NLIHC, 2025). If nothing changes, today's young adults could end up at a lifelong disadvantage relative to their predecessors.
Homelessness comes with severe health and social consequences. The Associated Press reported "homelessness in the U.S. has increased to a record high" because affordable housing remains "out of reach for many (AP News). Not only do these individuals suffer, but so do the public health system, schools, and urban infrastructure.
Attempts by the government to deal with the housing crisis have simply fallen short. There are many programs, such as the Low-Income Housing Tax Credit (LIHTC) and Housing Choice Vouchers, but "do not reach most of the low-income households in need" (NLIHC 2025). The Biden administration's 2024 Economic Report of the President echoed this call for zoning repeal with its acknowledgment that there should be "more housing supply through 'zoning reform grants, expanded tax credits, and streamlined permitting'" (White House/Treasury 51).
However, it is believed that current measures "are only treating symptoms rather than the structural deficit in housing supply" (CBRE Real Estate Investment Management). If there is not a lot more production and preservation, the gap between supply and demand is likely to continue widening.
At the local level, some states, including California and Oregon, have started to change single-family zoning laws to permit multi-unit homes. The early responses have been mixed, as several communities encounter resistance among neighborhood residents who do not want more-density development.
A mix of supply-side measures, financial relief, and tenant protections feels like the best plan to address the housing crisis. Supply Side Measures: Data indicate that "expanding housing supply reduces prices, particularly in elastic locations where building is allowed" (White House/Treasury 48). It is a policy that will be crucial to fueling a construction boom through zoning changes and public investment. The NLIHC calls for a "significant expansion of the Housing Trust Fund to create deeply affordable units throughout the country" (Public Policy Priorities 6).
Tenant Protections: Legal assistance and eviction diversion programs have successfully prevented evictions and kept renters housed. According to HUD, "Right-to-counsel programs decrease eviction rates by over 70 percent in participating jurisdictions" ("2024 AHAR"). Protecting Affordable: Keeping loss of naturally occurring affordable housing Units (NOAH) to a minimum is important. One affordable housing think tank, the Joint Center for Housing Studies, notes that "when an affordable unit is lost to market conversion, replacing it costs two/three times as much to replace as [it does] to continue preserving" (2025).
Increasing Affordable Housing Production. The federal government should ", fund construction of at least 3 million affordable units by 2035," as stated in the Economic Report of the President (White House/Treasury 52). Reforming Zoning and Permitting Processes.
States should strike down exclusionary single-family zoning and authorize multifamily housing near transit and job centers. NLIHC insists in its Public Policy Priorities that "zoning reform at the state level is critical to expanding the availability of affordable housing" (7). Further eviction prevention programs and legal aid for renters, as well as emergency rental assistance, would bring some of the stability desperately needed. The USICH maintains that "stable housing should be viewed as a public good, not a private privilege" (Homelessness Data & Trends).
Long-term solutions to the housing crisis need to include more public investment in affordable housing. Direct building of housing for low-income residents, by the federal and state governments, with financial help to insulate private builders from some costs, much like the public housing programs of the mid-20th century. This public investment would take private housing market reliance off the table, where profit often trumps equity. According to the Center on Budget and Policy Priorities, "public housing has historically served as a critical source of long-term stability for low-income families, and served as nearly crucial to ending homelessness (CBPP, 2022). By focusing on public dollars, we could ensure a steady pipeline of affordable units as well as an infusion of locally grown jobs and economic activity.
Another important approach is to reform inflexible land-use laws and local zoning. Single-family zoning, which many cities enforce on wide strips of their territory, restricts housing density and thus stands at a great remove from affordable housing. Removing zoning restrictions that prevent multi-family housing, accessory dwelling units, and mixed-use development can also go a long way towards creating supply both in the city and the suburbs. Studies show that cities with these reforms have lower housing costs and greater variety in types of housing (Shlay, 2018). And adjusting zoning regulations can also help with equitable development, preventing the displacement of long-term residents and integrating affordable housing into higher-opportunity neighborhoods.
Civil society exists as well, and a redesigned regulatory framework, dealer licensing and so on can help to address supply constraints, with the private sector playing a role that coordinates itself in response to incentives. Tax credits, low-interest loans and public-private partnerships can incentivize developers to include affordable units in new projects. The LIHTC program serves is one of the best examples whereby incentives can also promote construction that is affordable (NLIHC, 2025). It would also link profit motive with public good, allowing supply of housing to increase in a way that won't depend solely on the government's will, institutionalizing cooperation between private and public sectors.
It's not enough to ramp up supply - we must also protect tenants from eviction and displacement to stabilize housing. Legal services access, rent control efforts and eviction prevention programs can all be used to minimize the chances that families will become homeless, especially during times of hardship. The 'housing as a vaccine' metaphor fosters an understanding of the many ways that housing can function as both prevention and cure by pointing out that "tenant protection programs do not only prevent homelessness, they sustain community vitality while marshaling long-term public health and educational benefits" (HUD, 2024). They can protect current residents and increase housing stock at the same time, two important solutions for both short-term and long-term problems in the housing crisis.
Better transit and more transit-oriented development could go a long way toward reducing housing shortages by giving people access to more places. By siting affordable housing close to major transit hubs, people can live farther from the central city while still maintaining job access. The American Public Transportation Association emphasizes that "transit-oriented development increases housing supply and affordability by lowering transportation costs and providing more opportunities for people to live" (APTA p. 2023). Developing near transit doesn't just alleviate congestion but helps spur mixed-use communities: affordable housing mingled with commercial and recreational space.
Considering alternative housing options like modular construction, co-living spaces, and micro-apartments can drive down the cost of construction and expedite the delivery of affordable units. One possible theory: Modular and prefabricated homes can be built faster and cheaper than traditional construction, helping developers satisfy increasing demand. According to a study by McKinsey & Company, "innovative construction methods can lower project costs substantially, making it more feasible to finance affordable housing" (McKinsey, 2024). Such choices would be particularly constructive in crowded urban areas where space is tight and demand is high, offering more options to lower- and middle-income families.
There's a need to expand homeownership assistance programs that help first-time buyers get into the market. These programs that provide down payment assistance, low-interest loans, or mortgage guarantees can come in handy for a family that might otherwise be priced out. "Assistance to first-time buyers both promotes household ownership and helps address the long-run differential on wealth (HUD 2024). By focusing on these programs, policymakers can also move the needle when it comes to intergenerational inequality and provide young people with a realistic route to owning a home.
Controlling a housing market is crucial if you want to make sure that speculation won't keep these prices unreachable for so many. Vacancy taxes on unoccupied housing, limits on short-term rentals, and safeguards against bulk purchasing of housing by institutional investors can be effective in managing market distortions. According to the Urban Institute, "without regulation intervention, speculative investment drives up housing prices and restricts supply for middle- and low-income households" (Urban Institute, 2023). Good regulation can also mean that markets better serve the needs of people, rather than profits.
One of the worst social and economic challenges that we face in America is one involving housing. It's not a foregone conclusion so much as the result of years of policy choices that favored tough zoning and modest public investment in affordable housing. The fallout is homelessness, inequality, and displacement: systemic failures to recognize housing as a fundamental human right.
The U.S. housing crisis has been marinating for years in an anti-socialist culture of structural racism, crippling poverty, and zero-sum ideology that dictates who deserves to live in safe, affordable homes. With rents rising, a lack of affordable housing options, and increasing numbers of people becoming homeless, it's obvious that stagnant incomes, as well as difficult zoning laws and the commodification of the housing market, are to blame. The most vulnerable groups, including racial minorities and low-income families, are getting hit the hardest, sharpening existing disparities. What's more, this crisis presents distinctive difficulties for the younger generations, particularly teenagers and young adults, who today face greater barriers to homeownership than did previous generations, since prices are higher, but wage growth is slowing, and student debts still linger while starter homes vanish. If we don't do anything about it, these problems could linger and become even more challenging for young Americans to attain financial stability and accumulate wealth that they can pass along to future generations.
What is required to address this crisis is a strategy that looks at aspects of the problem, supply, demand, and regulation. This will call for more public investment in affordable housing, changes to land-use and zoning regulations, and promoting new construction technologies to increase the number of homes on the market. Enhancing renter protections, transit-oriented development, and alternative living situations such as co-living spaces and modular homes can also foster housing that is cheaper and easier to access. Finally, there will be help programs for first-time buyers, plus market regulations that will prevent prices from fluctuating and prevent speculation in the market, so that younger people can buy their own homes. These efforts must address today's challenges and the deeper structural problems that will shape generations to come.
Addressing this housing crisis will ultimately rely on continued commitment from policymakers, developers, and communities. The U.S. may help reduce homelessness, lift economic burdens, and encourage upward mobility by leveraging strategies around fair housing expansion, increasing affordable unit provision, and taking a long view toward future generations. As HUD Secretary Marcia Fudge explains, 'Housing is more than just a place to rest your head, it's the cornerstone of every individual's life' (HUD, 2024). If such a package were to be implemented, the U.S could end up with a housing system in which every American, including today's young people, has safe and secure homes to live in, builds their wealth through home ownership, and thrives in vibrant communities across the world.
Work cited.
The U.S Housing Crisis
Housing is a critical factor in economic stability, educational accomplishment, and quality of life. This foundation is increasingly fragile in the United States. "On a single night in January 2024, more than 650,000 people were experiencing homelessness, the highest number ever recorded," according to the U.S. Department of Housing and Urban Development (HUD) ("2024 Annual Homeless Assessment Report"). Millions of Americans confront skyrocketing rents or mortgage payments, and the housing crisis is among the severest social and economic challenges of our time.
To understand the true extent of today's housing crisis, we must first look back at what occurred in the wake of the 2008 crash. Prior to the Great Recession, "mortgage lenders provided millions of subprime loans to borrowers who couldn't afford them" (Federal Reserve History). When the bubble finally popped, "home prices plunged more than 20 percent, between April 2007 and late 2011" (Federal Reserve History), causing a wave of foreclosures and wiping out trillions of dollars in household wealth. Economist Naomi Zewde has observed that "the Great Recession wiped out wealth more for Black and Hispanic families, reversing generations of accumulated wealth" (Zewde). These differences have continued over time, leading to the long-term imbalances that are still being witnessed today in the housing market.
Even as the economy began to recover, homebuilding never caught up with demand. According to CBRE, "the housing supply gap that formed in the wake of 2008's Great Recession has widened to approximately 4.5 million houses." The economic recovery did not solve the problem, because housing supply continues to fail to keep pace with demand, and many people cannot afford to buy or rent.
The persisting housing crisis is a product of several structural problems, specifically, long-term undersupply, overly rigid zoning laws, climbing construction costs, speculation among investors, and flat wages. The U.S. Is Building More Housing Than Ever Before: So Why Does It Feel Like We're Not? Experts call the U.S. "a structural housing deficit." Quoting the Joint Center for Housing Studies (2025), "the nation has underbuilt by millions of units, especially at the lower end of the market." Those who earn moderate incomes cannot manage to secure affordable housing.
Many communities continue to 'zone out affordability' by imposing single-family zoning and caps on density (White House Council of Economic Advisers 2024). The Economic Report of the President tells us that "land use regulations have restricted supply, most dramatically in high-opportunity metros, driving up prices and increasing economic inequality" (White House/Treasury 44). Fresh efforts: Construction costs have recently spiraled out of control - "Since 2020, construction material prices are up over 35% while labor shortages delay projects - source CBRE" Source: CBRE Real Estate Investment Management. Such high costs render any new affordable housing projects unprofitable without charitable support or other incentives.
Institutional investors are snapping up single-family homes, making it difficult for first-time buyers to find options. "In many metro areas, investors make up as much as 20% of home purchases," the Wall Street Journal reported in a story on shrinking housing inventory for average families (quoted in Joint Center for Housing Studies).
Housing prices have soared far faster than wages. The National Low Income Housing Coalition (NLIHC) also reported that "in no state can a full-time minimum-wage worker afford even a modest efficiencies and rents" (2025 Public Policy Priorities 3). The affordability crisis is rooted in a spreading divide between income and housing costs.
It has caused huge social and economic damage, causing rent burdens, homelessness, and growing inequality. The 2024 HUD report stated that "the number of men, women, and children encountering homelessness increased by 18 percent over the 2023 figure" ("2024 Annual Homeless Assessment Report"). The U.S. Interagency Council on Homelessness (USICH) has connected this rise to the "expiration of pandemic-era assistance and an increasingly severe lack of affordable housing" (Homelessness Data & Trends).
Rental affordability has deteriorated in most of the country. The State of the Nation's Housing Report clarified that "more than half of all renters now spend over 30 percent of their income on housing, and almost one in four spend more than half" (Joint Center for Housing Studies 2025). These astronomical housing costs cause families to "restrict food consumption, reduce their cash assistance and/or social service use, forgo education or health care spending, reside in inadequate homes, or become homeless," trapping them in poverty (Joint Center for Housing Studies 2025).
The continuing housing crisis is leading to serious problems for younger generations, for teenagers hoping to get on the housing ladder." With home prices rising, wages stagnant, and student debt soaring, millennials and the dawn of Generation Z are finding it harder and harder to afford homes. A study by the Joint Center for Housing Studies states that "first-time homebuyers are priced out of major metropolitan areas, and many young people will never be able to afford the costs associated with being a homeowner without serious financial assistance" (JCHS, 2025). That could worsen wealth inequality between generations, as younger families have a harder time building equity and passing on wealth.
It's more than a financial problem. Systemic obstacles also confront young adults when they attempt to obtain credit and save for down payments. Colossally burdensome student loan debts can prevent would-be homebuyers from being eligible, and rocketing rents make it difficult for households to save. According to the National Low Income Housing Coalition, "increasing housing costs on top of high levels of debt create a nearly impossible situation for young adults to be able to access the housing market without targeted interventions" (NLIHC, 2025). If nothing changes, today's young adults could end up at a lifelong disadvantage relative to their predecessors.
Homelessness comes with severe health and social consequences. The Associated Press reported "homelessness in the U.S. has increased to a record high" because affordable housing remains "out of reach for many (AP News). Not only do these individuals suffer, but so do the public health system, schools, and urban infrastructure.
Attempts by the government to deal with the housing crisis have simply fallen short. There are many programs, such as the Low-Income Housing Tax Credit (LIHTC) and Housing Choice Vouchers, but "do not reach most of the low-income households in need" (NLIHC 2025). The Biden administration's 2024 Economic Report of the President echoed this call for zoning repeal with its acknowledgment that there should be "more housing supply through 'zoning reform grants, expanded tax credits, and streamlined permitting'" (White House/Treasury 51).
However, it is believed that current measures "are only treating symptoms rather than the structural deficit in housing supply" (CBRE Real Estate Investment Management). If there is not a lot more production and preservation, the gap between supply and demand is likely to continue widening.
At the local level, some states, including California and Oregon, have started to change single-family zoning laws to permit multi-unit homes. The early responses have been mixed, as several communities encounter resistance among neighborhood residents who do not want more-density development.
A mix of supply-side measures, financial relief, and tenant protections feels like the best plan to address the housing crisis. Supply Side Measures: Data indicate that "expanding housing supply reduces prices, particularly in elastic locations where building is allowed" (White House/Treasury 48). It is a policy that will be crucial to fueling a construction boom through zoning changes and public investment. The NLIHC calls for a "significant expansion of the Housing Trust Fund to create deeply affordable units throughout the country" (Public Policy Priorities 6).
Tenant Protections: Legal assistance and eviction diversion programs have successfully prevented evictions and kept renters housed. According to HUD, "Right-to-counsel programs decrease eviction rates by over 70 percent in participating jurisdictions" ("2024 AHAR"). Protecting Affordable: Keeping loss of naturally occurring affordable housing Units (NOAH) to a minimum is important. One affordable housing think tank, the Joint Center for Housing Studies, notes that "when an affordable unit is lost to market conversion, replacing it costs two/three times as much to replace as [it does] to continue preserving" (2025).
Increasing Affordable Housing Production. The federal government should ", fund construction of at least 3 million affordable units by 2035," as stated in the Economic Report of the President (White House/Treasury 52). Reforming Zoning and Permitting Processes.
States should strike down exclusionary single-family zoning and authorize multifamily housing near transit and job centers. NLIHC insists in its Public Policy Priorities that "zoning reform at the state level is critical to expanding the availability of affordable housing" (7). Further eviction prevention programs and legal aid for renters, as well as emergency rental assistance, would bring some of the stability desperately needed. The USICH maintains that "stable housing should be viewed as a public good, not a private privilege" (Homelessness Data & Trends).
Long-term solutions to the housing crisis need to include more public investment in affordable housing. Direct building of housing for low-income residents, by the federal and state governments, with financial help to insulate private builders from some costs, much like the public housing programs of the mid-20th century. This public investment would take private housing market reliance off the table, where profit often trumps equity. According to the Center on Budget and Policy Priorities, "public housing has historically served as a critical source of long-term stability for low-income families, and served as nearly crucial to ending homelessness (CBPP, 2022). By focusing on public dollars, we could ensure a steady pipeline of affordable units as well as an infusion of locally grown jobs and economic activity.
Another important approach is to reform inflexible land-use laws and local zoning. Single-family zoning, which many cities enforce on wide strips of their territory, restricts housing density and thus stands at a great remove from affordable housing. Removing zoning restrictions that prevent multi-family housing, accessory dwelling units, and mixed-use development can also go a long way towards creating supply both in the city and the suburbs. Studies show that cities with these reforms have lower housing costs and greater variety in types of housing (Shlay, 2018). And adjusting zoning regulations can also help with equitable development, preventing the displacement of long-term residents and integrating affordable housing into higher-opportunity neighborhoods.
Civil society exists as well, and a redesigned regulatory framework, dealer licensing and so on can help to address supply constraints, with the private sector playing a role that coordinates itself in response to incentives. Tax credits, low-interest loans and public-private partnerships can incentivize developers to include affordable units in new projects. The LIHTC program serves is one of the best examples whereby incentives can also promote construction that is affordable (NLIHC, 2025). It would also link profit motive with public good, allowing supply of housing to increase in a way that won't depend solely on the government's will, institutionalizing cooperation between private and public sectors.
It's not enough to ramp up supply - we must also protect tenants from eviction and displacement to stabilize housing. Legal services access, rent control efforts and eviction prevention programs can all be used to minimize the chances that families will become homeless, especially during times of hardship. The 'housing as a vaccine' metaphor fosters an understanding of the many ways that housing can function as both prevention and cure by pointing out that "tenant protection programs do not only prevent homelessness, they sustain community vitality while marshaling long-term public health and educational benefits" (HUD, 2024). They can protect current residents and increase housing stock at the same time, two important solutions for both short-term and long-term problems in the housing crisis.
Better transit and more transit-oriented development could go a long way toward reducing housing shortages by giving people access to more places. By siting affordable housing close to major transit hubs, people can live farther from the central city while still maintaining job access. The American Public Transportation Association emphasizes that "transit-oriented development increases housing supply and affordability by lowering transportation costs and providing more opportunities for people to live" (APTA p. 2023). Developing near transit doesn't just alleviate congestion but helps spur mixed-use communities: affordable housing mingled with commercial and recreational space.
Considering alternative housing options like modular construction, co-living spaces, and micro-apartments can drive down the cost of construction and expedite the delivery of affordable units. One possible theory: Modular and prefabricated homes can be built faster and cheaper than traditional construction, helping developers satisfy increasing demand. According to a study by McKinsey & Company, "innovative construction methods can lower project costs substantially, making it more feasible to finance affordable housing" (McKinsey, 2024). Such choices would be particularly constructive in crowded urban areas where space is tight and demand is high, offering more options to lower- and middle-income families.
There's a need to expand homeownership assistance programs that help first-time buyers get into the market. These programs that provide down payment assistance, low-interest loans, or mortgage guarantees can come in handy for a family that might otherwise be priced out. "Assistance to first-time buyers both promotes household ownership and helps address the long-run differential on wealth (HUD 2024). By focusing on these programs, policymakers can also move the needle when it comes to intergenerational inequality and provide young people with a realistic route to owning a home.
Controlling a housing market is crucial if you want to make sure that speculation won't keep these prices unreachable for so many. Vacancy taxes on unoccupied housing, limits on short-term rentals, and safeguards against bulk purchasing of housing by institutional investors can be effective in managing market distortions. According to the Urban Institute, "without regulation intervention, speculative investment drives up housing prices and restricts supply for middle- and low-income households" (Urban Institute, 2023). Good regulation can also mean that markets better serve the needs of people, rather than profits.
One of the worst social and economic challenges that we face in America is one involving housing. It's not a foregone conclusion so much as the result of years of policy choices that favored tough zoning and modest public investment in affordable housing. The fallout is homelessness, inequality, and displacement: systemic failures to recognize housing as a fundamental human right.
The U.S. housing crisis has been marinating for years in an anti-socialist culture of structural racism, crippling poverty, and zero-sum ideology that dictates who deserves to live in safe, affordable homes. With rents rising, a lack of affordable housing options, and increasing numbers of people becoming homeless, it's obvious that stagnant incomes, as well as difficult zoning laws and the commodification of the housing market, are to blame. The most vulnerable groups, including racial minorities and low-income families, are getting hit the hardest, sharpening existing disparities. What's more, this crisis presents distinctive difficulties for the younger generations, particularly teenagers and young adults, who today face greater barriers to homeownership than did previous generations, since prices are higher, but wage growth is slowing, and student debts still linger while starter homes vanish. If we don't do anything about it, these problems could linger and become even more challenging for young Americans to attain financial stability and accumulate wealth that they can pass along to future generations.
What is required to address this crisis is a strategy that looks at aspects of the problem, supply, demand, and regulation. This will call for more public investment in affordable housing, changes to land-use and zoning regulations, and promoting new construction technologies to increase the number of homes on the market. Enhancing renter protections, transit-oriented development, and alternative living situations such as co-living spaces and modular homes can also foster housing that is cheaper and easier to access. Finally, there will be help programs for first-time buyers, plus market regulations that will prevent prices from fluctuating and prevent speculation in the market, so that younger people can buy their own homes. These efforts must address today's challenges and the deeper structural problems that will shape generations to come.
Addressing this housing crisis will ultimately rely on continued commitment from policymakers, developers, and communities. The U.S. may help reduce homelessness, lift economic burdens, and encourage upward mobility by leveraging strategies around fair housing expansion, increasing affordable unit provision, and taking a long view toward future generations. As HUD Secretary Marcia Fudge explains, 'Housing is more than just a place to rest your head, it's the cornerstone of every individual's life' (HUD, 2024). If such a package were to be implemented, the U.S could end up with a housing system in which every American, including today's young people, has safe and secure homes to live in, builds their wealth through home ownership, and thrives in vibrant communities across the world.
Work cited.
