How the US made affordable homes illegal

The rules that keep American housing expensive.

Over the past year, housing prices in the US rose precipitously. Low interest rates and millennials’ entry into the market spiked demand across the nation, leading housing prices in some cities to increase by more than 20 percent in one year, and crushing the dreams of many would-be homeowners.

But housing prices in the US were a problem long before 2020 — and while demand is a big part of the story, there’s an even bigger reason it’s increasingly difficult for Americans to find affordable housing: We don’t have enough houses. According to one estimate, the US is now facing a nearly four-million-home shortage. And the primary reason for that shortage is what’s called exclusionary zoning.

Zoning laws are the local rules and regulations that decide what types of homes can be built where. These rules can sometimes have good intentions. But they also have a dark history in the United States as a tool to keep certain races, religions, and nationalities out of white neighborhoods. And while zoning laws in the US are no longer explicitly racist, their effect remains basically the same: to keep affordable housing, and the people who need it, away from the wealthiest Americans.

Today, in the majority of the US, especially in cities with good jobs, it’s illegal to build many affordable types of housing. And it’s led to a widespread affordability crisis. Watch the video above for more.

Sources:
Jerusalem Demsas reports on housing policy for Vox, and she’s written a ton about this issue:

Other data sources:

[miapdx]

I was a homeless child in the 70s, on my own at 15. Back then if you could scrape together any money, you could get a cheap room, I'm talking 9 bucks. There were a lot of options...people rented out rooms, cheap hotels were accessible to anyone, and once you got on your feet there were cheap apartments. Today's homeless have no cheap options. If you don't have hundreds you are outside. And there's a lot of people outside...and it's a cold place to be.

[LeventK]

This is the refutation of "If you're homeless, just buy a house."

[lovemusicbandchorus]

I find it incredibly hypocritical how these same people that show up to these zoning meetings to say "not in my neighborhood" and keep new housing from being built, are the same ones who complain about how something needs to be done about "the homeless problem."

Creating affordable housing is the first step to doing that, but these people care more about their property values than their own humanity.

[MrTonglong]

“What do we want?”
“Affordable housing!”
“Where do we want it?”
“Not in my neighbourhood, it’ll hurt my property values!”
xD

[Matt.]

The San Jose petition against the construction of housing for their own’s kids teachers is awful! Shame on those who signed it!!

[DanielFranquiz]

Don't forget about how these zoning laws have made new cities increasingly car dependent.

[johansilwouden]

In my country, the Netherlands, housing prices have also gone through the roof! One of the reasons is, that mortgage rates have been low for years and that ( wealthy) people in general invest in real estate. We do not have the strict zoning laws mentioned in this video, in our densely populated country row houses and semi detached homes are the norm. However, we have a ton of karens and darens in our little country that suffer from the not-in-my-backyard syndrom. Im my town, a project developer wants to repurpose several old commercial and school buildings and turn them into appartments for young people to prevent them from moving to the nearby bigger cities. Many people in the surrounding neigbourhoods have signed a petition against it! And the same people are complaining about the lack of teachers, doctors, nurses and restaurant staff in our town!

[karliebellatrixyoung]

Some of the most egregious behavior on this topic comes from people who are well enough off to own their own home and worry about things like "neighborhood character" but not well enough off to actually help their children buy a place of their own. This might be the worst peacetime hazing any generation has been put through by their own parents.

[mikeb]

The bank said i can't afford a £1, 100 a month mortgage, even though i've been paying £1, 300 a month rent for the last 6 years :/

[ScytheNoire]

This isn't just an American problem, but also in Canada. Canadian housing prices are at an all-time high, and completely unaffordable.

[akalixevelynn]

lets not forget the richer population isnt just moving into the fancy houses they are also keeping hold on the smaller ones to rent out and hording basic living needs for profit.

[Nicolas___]

For me as an European and urban planner, it is interesting to see how single-family housing policy in the USA is finally reaching its limits.
Detached houses may be in demand, but they take up the most space per capita, generate a lot of car traffic and create monofunctional quarters.

Significantly more apartment buildings are needed in connection with local public transport. Affordable living space can then be created with public funding.
Incidentally, the urban sprawl can also be curbed somewhat.
In short, it needs actual regional and urban planning.

[taino-srvy]

And then people wonder why 20 and 30 and 40 and 50 year Olds are still living with their parents

[bhflute]

If I were a teacher in San Jose and the parents blocked affordable housing, that would be the time I would resign. No appreciation whatsoever…

[gwils]

It's very interesting.

After WW2 when there was a housing crisis the government stepped in and funded building a bunch of small, inexpensive, homes for new families.

Now, they sit by and watch an entire generation watch their dreams evaporate and wring their hands over what to do.

Or, just do nothing. Has the Federal government even remotely mentioned taking action on this? Like, real, tangible, action?

[alexzandermunoz]

Another huge issue is large firms mass purchasing homes. Large corporations shouldn't be able to control the cost of housing.

[jgmm]

About 1/4 of homeless people in the USA are employed. And a lot of housed people pay 50% of their income or more just to stay sheltered. Can't expect people to work their way into a house.

[_volder]

To even call small single-family houses "starter" houses is to deny another extremely important fact in this. Average number of kids per household is going down. If you never have a bunch of kids, you never need to move to a big house meant for a family with a bunch of kids. The "starter" house could just as well be permanent, not a "starter" at all... but that's exactly what builders aren't building.

[marctestarossa]

"Multi-Family-Buildings are banned from this area" easily translates into "We don't want poor people here!" or "Keep those slaves out of my neighbourhood!"

[ericwright]

More mixed use would help a lot too. When you have a small grocery store or work is walking distance from your house it's pretty life changing.