Economic Prosperity and Housing Affordability in the United States: Lessons from the Booming 1990s

The United States is facing an acute shortage of reasonably priced housing with over 35% of households paying more than 30% of their income for housing costs in 2015. As the U.S. economy recovers from the Great Recession, will housing become less unaffordable as incomes rise and households could potentially pay a lower share of their income for housing costs? To see if this is likely, I examined the change in housing affordability in the 100 largest metropolitan statistical areas (MSAs) in the United States between 1990 and 2000, a period of exceptional economic prosperity. I used the percentage of housing cost-burdened households (those that pay more than 30% of their gross income on ownership or rental costs) as a measure of the availability of reasonably priced housing. I used discriminant analysis techniques to detect statistically significant differences in the percentage of cost-burdened households in the 100 MSAs based on a variety of factors. I found that despite the phenomenal economic prosperity of the 1990s, about 30% of households were cost-burdened both in 1990 and 2000. High MSA median income was correlated with a greater shortage of reasonably priced housing. Neither economic growth rate nor poverty rate nor population growth rate distinguished high-shortage MSAs from low-shortage ones. Large MSAs and MSAs in the West had greater shortages than other MSAs. Economic prosperity did not alleviate the problem of lack of reasonably priced housing in the past, and is not likely to do so in the near future. Planners and policy-makers need to enact new policies at local, regional, state, and federal levels to effectively address America’s chronic affordable housing shortage.     

There's Regulatory Crime, and then there's Landlord Crime: from 'Rachmanites' to 'Partners'

This article considers local authority strategies towards the regulation and prosecution of private landlords who commit the criminal offences of unlawful eviction and harassment. Generally, local authorities operate compliance-based strategies, rarely (if ever) resorting to prosecution. In seeking to explain this approach, the article draws upon the literature concerning regulatory crime, but also distinguishes local authority responses to landlord crime from regulatory crime as more typically conceived. Broadly, it is argued that, while there are clear parallels with other areas of regulatory activity, there is much that is different about landlord crime, particularly as a result of central government strategies towards the private rented sector, the legislative background to landlord crime, and the motivations behind local approaches to regulation.     

Lists and Lotteries: Rationing in the Housing Choice Voucher Program

This article investigates how the Housing Choice Voucher (HCV) program rations subsidies. HCV is the largest low-income housing assistance program in the United States. Despite the program’s size, millions of HCV-eligible households go without subsidy each year. Because the demand for support exceeds the supply of subsidies, HCV assistance is rationed through several mechanisms. These mechanisms and their relationship with the HCV system from both the client and administrator perspectives will be discussed. Implications of HCV rationing will also be discussed.     

从全面建小康的战略高度看当前上海居室安全面临的形势及防控对策

实现“小康生活”,其核心就是确保人民群众有一个安居乐业的居住环境。公安机关能否有效驾驭日益复杂的居室治安形势,在一定程度上决定了最终能否实现小康社会。遏制和减少入室盗窃案件,不仅对降低全市刑事案件总量具有决定性作用,而且也是公安机关忠实履行“三个代表”精神,最大程度维护广大人民群众最根本利益的具体体现。     

Searching for Affordability and Opportunity: A Framework for the Housing Choice Voucher Program

Abstract

Affordability, a key factor in the housing search process, becomes critical when locating rental housing in opportunity-rich areas. The Housing Choice Voucher (HCV) program accommodates low-income households searching for housing and encourages recipients to reside in low-poverty areas. Affordable neighborhoods that are accessible to public transportation are often found in distressed areas, and not all HCV recipients succeed in locating qualified housing. To address these challenges, a housing search framework is developed to assist HCV households in the housing search process. This framework builds on the methodology of the U.S. Department of Housing and Urban Development (HUD) for the Location Affordability Index and Affirmatively Furthering Fair Housing assessment tool by creating multivariate indices that incorporate housing supply, accessibility to opportunity, and neighborhood conditions. The framework serves as a foundation for an online housing search application for public housing authorities to further fair housing goals, HCV recipients to locate qualified housing units, and local governments to assess affordability and opportunity.     

Putting the Supplier in Housing Supply: An Overview of the Growth and Concentration of Large Homebuilders in the United States (1990–2007)

As housing production was ramping up in the 1990s and 2000s, some of the industry’s largest firms experienced remarkable growth primarily through mergers and acquisitions and the issuance of debt; the market share of the 10 largest firms tripled between 1995 and 2005. This article describes the role of financial firms in encouraging that growth and some of its consequences. Drawing on financial filings, news reports, investor analyses, and other relevant data, this article offers an overview of the relationship between homebuilders and investment firms, as well as a new explanation of the oversupply of housing in the 2000s. In doing so, this article seeks to bring attention to homebuilders as a missing feature in analyses of housing supply and housing markets, and proposes directions for future research.     

The post‐Stalinist present and the Australian past

Abstract

Since 1979, housing reforms in China have been seen as successive state efforts to improve urban governance. The idea is that the state has all along failed to deliver housing efficiently and equitably through the work units and that it is believed that only through the recommodification of housing could the housing problem be ultimately resolved. The housing monetarization policy (HMP) was thus launched in 1998 to replace the long-standing in-kind housing subsidy under the old welfare housing system. The policy aims at providing workers with cash subsidies as part of their wage package to enable them to buy or rent their homes from the market. The purpose of this paper is to explain the implications of the HMP through a neoliberal urbanization perspective. Through the case study of Guiyang, it is argued that while the HMP is successful in improving certain historical housing inequalities, it does not primarily aim at eradicating housing inequalities. HMP has in fact led to more rather than less horizontal inequities. In addition, it is argued here that a market housing system is leading towards increasing urban poverty, greater social polarization and spatial segregation. To improve governance, China needs to keep neoliberal urbanization in check and pay serious attention to its adverse consequences during economic transformation.     

The Portland region: Where city and suburbs talk to each other—and often agree

Abstract

Portland, OR, is often cited as an example of successful regional governance and planning. The metropolitan area appears to match many of the precepts of the popular “compact city” model of urban growth and to demonstrate the capacity of local and state government to shape growing metropolitan regions. Given this reputation, it is important to evaluate the relevance of the Portland experience for other communities, distinguishing unique local circumstances from generalizable characteristics.

This analysis explores the spatial character of metropolitan Portland in the 1990s, summarizes the politics of regional planning, examines weaknesses in the Portland approach, and offers suggestions for other metropolitan areas. The study finds that many of Portland's accomplishments center on urban design, but that the region's most distinguishing characteristic is its attention to political process. The discussion concludes with suggestions about the value of extensive civic discourse, incremental policy making, and institution building.     

Homeownership and Wealth among Low- and Moderate-Income Households

Abstract

Although currently neither politically nor fiscally feasible, the notion that access to inexpensive, presumably high‐quality housing should be a government‐guaranteed universal right would be a terrible idea even if it were popular and affordable. The proposition fails on three counts. It isn't necessary. It doesn't make economic sense. And, most compelling, were such a policy to be implemented, its putative beneficiaries would not thank us.

Even if we should not promulgate “a right to decent, affordable housing,” we want to assure that all Americans have access to decent, affordable housing. Happily, we can count on the private housing market (coupled with rising prosperity) to serve 95 percent of the country's households. Serving the remaining 5 percent requires concerted measures to scale back onerous housing regulations that prevent the private housing sector from meeting the needs of lower‐income and untypical households.     

Comment on James R. Cohen's “abandoned housing: Exploring lessons from Baltimore”

Abstract

For most cities, the possibility of transforming unused property into community and city assets is as yet hypothetical. Fiscal constraints limit the amount of land acquisition, relocation, and demolition that cities can undertake. Private investors, unsure of which neighborhoods have a chance of becoming self‐sustaining, are reluctant to take risks in untested markets.

Cities need to create citywide planning strategies for land aggregation and neighborhood stabilization and to develop analyses of the risks and opportunities associated with redevelopment opportunities in specific markets. Research seems sorely needed. Although the policy world cannot and will not stand still waiting for academics to design the perfect study or to collect all the data to model the potential effects of various policy options and investments, analysis that can play a more immediately supportive role can and should be done now.