Housing advocates frequently claim that the housing crisis represents a market failure, which Investopedia defines as an inefficient distribution of goods and services in the free market. In market failure, the individual incentives for rational behavior do not lead to rational outcomes for the group. In other words, each individual makes the correct decision for…
About 24 hours after the Supreme Court struck down the CDC’s latest eviction moratorium, housing advocates assembled in at least twenty cities to protest. The protests were organized by Cancel the Rents for the purpose of demanding that Congress enact an eviction moratorium for the duration of the pandemic. Cancel the Rents (CTR) called for…
The Ford Foundation and Robert Wood Johnson Foundation recently committed $1.6 million to the HouseUS Fund. The fund, according to one of the co-directors, is not about building housing or building homes, it’s about building power. We are looking at the broader definition of housing and approaching it as a right rather than a commodity….
Virtually every proposal to address the housing crisis starts with the same flawed premise, namely, the solution must come from government. The city of Boise illustrates this flawed premise. The city is currently testing three different ideas to address the housing shortage: incentives and assistance for homeowners to build an accessory dwelling unit (ADU), allowing…
Many great innovations begin with an idea that others dismiss as absurd. The electric light bulb is one example. When Thomas Edison announced that he was working to invent an electric light bulb, he was mocked as a fool with no understanding of electricity. But he trusted his own judgment, and when he succeeded, he…
California lawmakers are considering legislation that would effectively abolish single-family zoning across the state. This isn’t sitting well with local government officials, and they have formed a coalition to lobby against the legislation. In an OpEd in the Los Angeles Times, three leaders of the coalition argue against the proposed zoning changes. These changes in…
Freedom enables innovators to find new values to create and new ways to create values. Airbnb found a new way to provide vacation housing. Uber found a new way to provide transportation. And PadSplit is attempting to bring innovation to affordable housing. Founded in 2017, PadSplit acts as a broker between property owners and individuals…
When confronting a problem, some individuals have difficulty seeing a solution that is right in front of their nose. And this is particularly true when they are busy looking down their nose. The affordable housing crisis provides an example. Virtually everyone agrees that there is a substantial shortage of housing for low-income families. The primary…
No solution to the housing crisis is without pros and cons. This is true of the myriad schemes proposed by government officials as well as free market solutions. Government programs do help some low-income families, but the demand for that assistance far exceeds the supply. As an example, over 20 million families are cost burdened…
In this series, we have examined many of the practical issues regarding the housing crisis. We have seen how market-oriented solutions can address many of the problems associated with that crisis. And while the free market is eminently practical when it comes to producing the values that humans want and need, the free market is…
Much of the discussion of housing policies for low-income families involves expanding government policies and programs. Expanding policies such as inclusionary zoning and rent control, along with increasing funds for housing vouchers, are among the policies most commonly advocated by housing activists. These policies are funded by taxpayers, and many individuals disagree with these types…
If we truly want to solve the affordable housing crisis, then we cannot look at each issue in isolation. We must consider the full context. The affordability of housing involves more than simply the cost of housing. It also includes an individual’s income. And, just as there are many restrictions on housing producers to build…