Now more than ever, the prospect of becoming a homeowner seems far-fetched and downright impossible in the United States. The National Low Income Housing Coalition reports there is a great disparity between individual’s income and housing affordability. This struggle is most relevant to Millennials and Generation Z, many of whom are first-time buyers.
Unaffordability in housing has not always been the norm. The Federal Reserve Economic Data in the U.S. census states the gap between annual income and housing cost has widened drastically. In the past 50 years, home prices were usually three times the amount of a person’s annual income. Now, a person making $80,000 would not be able to afford a house ten times their annual income.
Zoning laws are regulations that play a large role in how housing is divided and where each citizen resides. This determines which type of constructions and houses are built. Exclusionary zoning laws are designed to keep the density of a population limited, often targeting minorities because bigger lots and single-unit housing are unaffordable for those with lower incomes.
Gentrification is another key factor to the high cost of housing. A richer demographic moving into previously low-income areas results in high costs for market-rate housing. The Bay Area is a prime example of gentrification.
The Urban Displacement Project places the majority of the Bay Area at being “stable/advanced exclusive” to “stable moderate/mixed income,” pertaining to the probability of displacement for residents. A displacement of lower-income individuals frees up spaces for richer tenants to move in. Over time, this leads to gentrified areas affordable only by the top echelons of society.
Lack of housing development could also be attributed to traditional standards of wealthy neighborhoods. The term “neighborhood character” according to Vox, is often an argument used against new infrastructure.
Neighborhoods with single-unit housing trends toward the white populus. As such, the changing of zoning laws for new multi-family units are difficult. Single-family units are favored by the wealthy and often “whiter” residents, which stop the incentive to build more affordable housing such as “starter homes,” or duplexes.
Housing supply nowadays does not reflect the increase in population. Redrawing zoning laws to include multi-unit zoning could be a start to affordable housing. Redrawing zoning laws to integrate different social classes has the added effect of having an economically diverse neighborhood. Families are able to have access to shared resources including education and public infrastructures, allowing opportunities for all to thrive.
It is crucial to consider that simply making more housing does not equate to the highest quality of life. Accessibility to employment, education and transportation should be considered in housing developments.
Housing should not be seen simply as a commodity, rather it is a necessity for all to sustain a living in society. Times have changed drastically since the previous generations have purchased their homes. It is time for society to rethink the traditional image of suburbia and move toward an economical future of housing.