- Nov. 29, 2023
-- Productivity takes a hit when workers cannot afford to live in the community in which they work. People who grow up in the community may not be able to afford a family home to stay, causing the community to age and lose economically active demographic groups. This loss of population and economic strain negatively impacts crucial areas of the community such as education, neighborhood appeal, and infrastructure development. Furthermore, the absence of affordable housing allows for gentrification.
Pros and Cons of Policies to Increase Housing Supply and Affordability:
- Allow ancillary housing. This can increase the availability of affordable rental units without imposing significant changes on existing infrastructure. Homeowners stand to benefit from the additional income, while tenants gain access to affordable housing options. However, concerns may emerge regarding neighborhood character, density, or the strain on local infrastructure like parking and utilities. To mitigate these concerns, careful planning and well-designed regulations are essential.
- Reform zoning and land-use. Modifying regulations to permit small multi-family units, such as duplexes, triplexes, or fourplexes, can boost housing density and expand affordable options. It not only fosters mixed-income neighborhoods, but it also optimizes land use. Some residents may be apprehensive about increased density, neighborhood character, and potential effects on property values. Balancing these concerns with community engagement, effective form-based codes, and enforcement of property maintenance can pave the way for successful implementation.
- Target financial incentives. Providing developers with tax breaks or subsidies for constructing affordable housing can act as a catalyst for its development. By offsetting the higher costs associated with such projects, these measures encourage developers to incorporate affordable units, thereby narrowing the affordability gap. However, caution must be exercised to avoid potential fiscal strain and resource allocation concerns.
- Offer tax-reduction incentives for responsible landlords. Providing tax-reduction incentives to landlords who maintain their properties well and follow best practices can encourage responsible property management. Landlords may see reduced tax burden as a benefit and might be more inclined to invest in property maintenance and upgrades. In addition, taxes charged to landlords are passed through to tenants, so higher taxes drive higher rent. Reducing the tax for responsible landlords can help reduce housing costs while maintaining or enhancing the character of neighborhoods.
- Collaborate to provide transportation options. By providing transportation options between communities, residents from areas with limited affordable housing can access housing options in the neighboring community. This expands the pool of available affordable housing, providing more choices for those seeking affordable homes.
To tackle these pressing challenges, governments must streamline regulations, promote mixed-income neighborhoods, and incentivize landlords to prioritize affordable housing, and invest in urban planning. By implementing these strategies, we can forge a path towards a more inclusive and economically prosperous society.https://www.cobalt360.org/