America’s Affordable Housing Crisis

President Biden worries about high housing costs. So do Republicans in Congress. The consensus reflects a major problem: Tens of millions of families, across red and blue states, struggle with rent and home prices. The reason is a longstanding housing shortage.

But action in Washington won’t make a huge difference. America’s affordable housing crisis is likely to be solved in cities and states. In today’s newsletter, I’ll explain how many are already doing so in bipartisan fashion.

Local laboratories

Home prices are up about 60 percent over the past decade, adjusted for inflation. About a quarter of renters — some 12 million households — spend more than half their income on housing, far in excess of the one-third level that is considered healthy. Homeless camps have expanded, and “super commuters” — who drive for 90 minutes or longer to work — have migrated well beyond the expensive coasts to smaller cities like Spokane, Wash., and fast-growing metropolitan areas like Dallas and Phoenix.

Generally, Republican-led states have been more affordable than Democratic-led ones. They tend to have fewer construction and environmental rules, which allows the housing supply to expand faster. But as rent and home prices climb beyond middle-income budgets in more places, states are racing to add housing.

The legislation in each state varies. But in general it removes permitting and design barriers so new construction can be approved faster. States are also trying to alter zoning rules to allow a greater diversity of units in more neighborhoods.