How the US made affordable homes illegal

Summary

The video discusses the growing housing affordability crisis in the US, particularly in areas like the San Francisco Bay Area. Housing prices have skyrocketed due to high demand and limited supply, driven by factors like low mortgage rates and restrictive zoning laws. Exclusionary zoning, which limits the construction of affordable multi-family homes, is a major contributor to the shortage. Wealthy residents often oppose changes, fearing property value declines. The video explores potential solutions, including zoning reforms and federal initiatives, but highlights the need for strong political will to tackle the crisis.

Takeaways

• 🏠 The Bay Area's housing market is extremely expensive, and this is a reflection of a larger nationwide housing affordability crisis.
• 📈 Housing prices in the US have reached record highs, making homeownership less attainable and driving up rental costs.
• 👨‍👩‍👧‍👦 Millennials, the largest generation in American history, are now entering their prime home-buying years, contributing to increased housing demand.
• 💸 Low mortgage rates have further fueled demand for homes, but the supply of new homes isn't keeping up.
• 🏗️ The US built fewer homes in the 2010s than in any decade since the 1960s, with a significant drop in the construction of starter homes.
• 🚫 Exclusionary zoning, including single-family-only zoning and minimum lot sizes, is a major obstacle preventing the construction of more affordable housing.
• 🚗 Many zoning laws require excessive parking spaces and impose height restrictions, further limiting housing development.
• 🏡 Zoning laws are a significant factor in racial segregation, as they have historically been used to exclude people of color from certain neighborhoods.
• 🙅‍♂️ Wealthy residents often oppose changes to zoning laws to preserve 'neighborhood character,' which limits the development of affordable housing.
• 🏛️ Addressing the housing crisis will require political action at state or federal levels, as local efforts often face opposition from influential residents.

Q & A

Why have housing prices risen so much in the last year?

Housing prices have increased due to a combination of factors, including a surge in demand driven by millennials entering their prime home-buying years and historically low mortgage rates making borrowing cheaper. However, housing supply has not kept pace with this demand, causing prices to skyrocket.

What is exclusionary zoning, and how does it contribute to the housing crisis?

Exclusionary zoning refers to local regulations that restrict certain types of housing, such as multi-family units, from being built in certain areas. This limits housing supply, especially in high-demand areas, and contributes to rising home prices and rents by preventing the construction of more affordable housing options.

How does single-family-only zoning exacerbate the housing shortage?

Single-family-only zoning limits land to one housing unit per lot, restricting the construction of more affordable housing like duplexes or small multi-family buildings. This reduces the overall housing supply in areas where demand is high, driving up prices and making homeownership less attainable for many.

What are the effects of parking requirements in zoning laws on housing development?

Parking requirements, such as mandating two parking spaces per housing unit, reduce the number of homes that can be built on a given piece of land. This increases the cost of development and ultimately makes housing more expensive, as developers must reduce the number of units they can build to accommodate parking spaces.

How do minimum lot size requirements impact housing affordability?

Minimum lot size requirements mandate that each home be built on a large plot of land, making it impossible to build smaller, more affordable homes. In areas with high lot size requirements, like Atherton with a minimum of one acre per home, affordable housing becomes virtually unattainable.

Why is it challenging to change zoning laws that could help ease the housing crisis?

Changing zoning laws is difficult because it often faces opposition from wealthier residents who fear that new housing developments will lower property values or change the character of their neighborhoods. These residents frequently attend public meetings to block zoning changes, preventing the construction of more affordable housing.

How does the generational shift in homebuyers contribute to the housing crisis?

Millennials, the largest generation in American history, are now reaching their prime home-buying years, significantly increasing demand for housing. This surge in demand is not being met with adequate supply, worsening the housing shortage and driving up prices.

What impact do zoning laws have on racial segregation in housing?

Zoning laws, particularly single-family zoning, contribute to racial segregation by restricting housing in certain areas to wealthier, predominantly white residents. Historically, zoning laws were designed to exclude people of color from certain neighborhoods, and although race is no longer explicitly mentioned, these laws continue to disproportionately affect minority communities.

What are some potential solutions to the housing shortage mentioned in the script?

Potential solutions include changing zoning laws to allow more multi-family housing, reducing parking requirements, and lowering minimum lot sizes. Additionally, federal or statewide action to incentivize local governments to remove exclusionary zoning policies could help increase the housing supply and make homeownership more attainable.

What actions is the Biden administration taking to address exclusionary zoning?

The Biden administration has introduced a $5 billion program to incentivize local governments to remove exclusionary zoning laws. However, this effort is relatively small in the face of the housing crisis and may not be enough to address the scale of the problem without further political will and action.