Three are two housing crises. The first is a market-rate housing crisis which is caused by government zoning that limits the construction of new homes and thus leads to supply shortages and high prices. Zoning reform will fix this crisis. The second housing crisis is one of people who can’t afford housing no matter the price. These people need govt assistance, preferably in the form of vouchers.
The transactional costs from realtor fees does reduce liquidity, but it is a secondary factor compared to zoning.
More than just vouchers, these people need services provisioned in places other than those with the most expensive housing costs in the country.
The quality of services offered by NYC and SF to the homeless is unparalleled but it simply is not economical/borderline absurd to try to house them in the economic agglomeration centers of the US.
Yep. Often the reason a person can’t afford a home at all is due to other needs or issues (job training, mental health, etc..). A comprehensive services package could be of immense benefit if administered correctly. Your second point (NYC, SF being still too expensive) illustrates how solving the market rate housing crisis will help solve the non-market rate housing crisis.
Even with lots of house building, the market rate will not get low enough to make it economical to house most of these people.
Given the unmet demand for density right now, it will take a lot of building in a lot of metros for there to be a significant decrease in rents in urban centers. Even with really a ton of building in SF, we are talking 25% reduction in rent when these people would have trouble even with a 50% reduction in market rents.
Massachusetts has recognized this problem, which is why most new vouchers are in Fall River, MA rather than Boston - it is much cheaper to house.
I didn’t know that about Fall River, thanks. And you’re right, we are in such a hole that even a 50% reduction won’t help many, and thus any vouchers will need to be generous to house people in high opportunity metros like Boston and SF. Still, it’s these high opportunity areas with their good jobs that can do the most to give people a better shot at life. Places like Fall River may have cheap rent, but there are few well-paying jobs nearby.
The transactional costs from realtor fees does reduce liquidity, but it is a secondary factor compared to zoning.