For many Americans, finding a place to live is nearly impossible. According to estimates, there are 4 to 7 million fewer homes than needed. The United States is experiencing a serious housing crisis, as reported by NPR in an article by Mary Louise Kelly and colleagues. Costs are rising due to the housing crisis, and many are forced to move back in with family or make do with subpar living arrangements.
The article shares the story of one renter in Albuquerque, New Mexico, whose rent suddenly increased by more than $200 a month. The increase forced the individual to move out of the city because they could no longer afford it. This experience represents a more significant issue affecting homebuyers and renters nationwide. Those who can find a home are devoting a larger percentage of their salary to it as housing becomes more scarce.
Why does the housing crisis persist? According to Alex Horowitz, head of Pew's Housing Policy Initiative, tight zoning regulations are one significant contributing element. There is fierce rivalry for the few available homes since these laws make building new homes in locations with a high concentration of jobs difficult. As a result, homes with different income levels compete for the same houses, which further drives up prices.
According to the article, there are a few signs of hope. Significant zoning rule changes in cities like Minneapolis have allowed building more inexpensive housing alternatives, including apartments, townhouses, and duplexes. Because of these initiatives, rent costs in the city have remained steady, providing a possible model for other places dealing with comparable issues.
Many believe owning a home is increasingly out of reach as mortgage rates rise and smaller, more affordable homes become scarcer. Stricter lending guidelines exacerbate the issue by making it more difficult for first-time purchasers to obtain loans.
Horowitz is nevertheless upbeat despite these difficulties. He cites recent initiatives by state and local governments to cut construction costs and increase the supply of more affordable dwellings. Even if these actions are still in the early phases, they may help reduce the strain on the housing market and facilitate finding a house for more Americans.
Read the original NPR piece by Mary Louise Kelly, Mia Venkat, Kathryn Fink, and William Troop, April 23 2024, for a more thorough examination of the issue.