Hi, I’m Pete Carroll, executive of public policy at CoreLogic and I’m here to talk about a crisis facing our nation which doesn’t quite get the attention it deserves. That issue is the chronic and seemingly intractable affordable housing crisis in the U.S. In this series, I will discuss various facets of this complex crisis facing our nation as well as solutions to the problem.
So, we’ll start off by answering the question: What is the Affordable Housing Crisis exactly?
The Affordable Housing Crisis is a bit of a misnomer.
At its core, it means there’s just not enough housing to keep pace with demand. When there’s a lack of supply, home prices go up.
Now, growing home prices can be really good for existing homeowners. These price increases result in an increase in home equity which builds wealth.
But high prices can keep the dream of homeownership out of reach for others.
So why does this matter? Well, home ownership builds intergenerational wealth, which is a key to economic prosperity. For the overall health of the housing economy, it’s bad for supply not to keep pace with demand.
The interesting part about this crisis, as I alluded to at the beginning, is that it’s not just about affordable housing. Indeed, there’s not enough housing for every income level—and it’s important to solve this housing supply gap for everyone.
I like to think about housing across income levels as a ladder. If you only add housing at the bottom, there’s not enough supply, or rungs in the ladder, for people to rise up. A failure to address this problem holistically will block opportunity for economic mobility.
In short, the Housing Supply Gap Crisis prevents people from capturing a piece of the American Dream.
That’s why the problem isn’t just about affordable housing; it’s about the housing supply “gap” everywhere.
Thanks for tuning into this episode of “The U.S. Housing Supply Crisis and Economic Mobility.” For more information about the property ecosystem, visit corelogic.com/insights. Otherwise, make sure to like, leave a comment and subscribe, and we’ll see you in the next episode.
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