, Columnist
Affordable Housing Starts in the Labor Market
But what’s the list price?
Photographer: Allison Joyce/Bloomberg
When it comes to housing affordability, the logic of “build build build” is straightforward enough: Housing is too expensive. If there were more of it, prices would fall. Ergo, build more housing. Homebuilders are even pushing a plan for a million new affordable houses, which they are calling “Trump Homes” to appeal to the president.
Unfortunately, it’s not that simple. The problem of housing affordability is much bigger than insufficient supply; it’s a mismatch with demand. And that demand is driven by income inequality that has seen soaring income growth at the top and tepid growth (or even stagnation) in the middle.