Why America Can't Build Enough Homes | Opinion

America's housing affordability crisis isn't solely attributable to lumber prices, labor shortages, or increased construction costs. While these factors play a role, the root of the issue lies in a supply crisis. Too many people are vying for too few homes, which drives up prices for everyone. This summer, home prices continued their upward trajectory, with a 2.2 percent year-over-year increase in May, despite a shortage of 7.2 million affordable rental homes for extremely low-income renters, according to the Federal Housing Finance Agency. So, the question remains: what's preventing us from building more homes?

Much of the answer can be traced back to zoning offices and planning departments across the country. Designating land for duplexes, townhouses, or small multifamily buildings can be a complex, costly, and time-consuming process. Surveys, environmental assessments, architectural plans, applications, and fees must all be completed before a builder even knows if a project will be approved. This multifaceted approval process can consume substantial time, capital, and expertise, often without guarantee.

While reasonable oversight is necessary, the regulatory maze can be daunting, consuming resources without guaranteeing approval. Additionally, the newly enacted 21st Century ROAD to Housing Act aims to tackle some of these issues by promoting housing supply, streamlining reviews, and encouraging development. However, the success of these measures hinges on proper implementation.

Housing agencies and local governments need sufficient trained personnel to process applications and keep projects moving forward. If understaffed offices and inefficient systems persist, legitimate applicants may still face lengthy delays.

Moreover, the complexity of the process can inadvertently become a security mechanism, discouraging legitimate applicants while inadvertently shielding against fraud. Simultaneously, effective communication is crucial. The term "multifamily development" may evoke concerns about overcrowding, declining property values, or unfamiliar neighbors.

Yet, people generally desire safe, attractive communities with housing options for families and individuals of all ages. The disconnect between perception and reality necessitates transparent, informative communication about the benefits of diverse housing options.

The stakes extend beyond individual homebuyers; housing decisions impact employment opportunities, family proximity, and the well-being of older adults. Housing supply is a concern for everyone. Furthermore, the notion that success in America is synonymous with the largest home possible is a narrow perspective. Homes of various sizes can cater to diverse needs, from young families to aging adults and first-time renters. The choice between a sprawling mansion and a more modest dwelling should not define one's success.

The consequences of inadequate housing supply are far-reaching. Families may be forced to commute further from work, older adults may struggle to maintain their homes, and communities may become exclusive enclaves only accessible to the affluent. To address these challenges, a multifaceted approach is required. Leaders must set measurable housing-supply targets, streamline zoning and permitting processes, adequately staff approval offices, modernize processing systems, and facilitate the construction of diverse housing types, including duplexes, townhomes, apartments, accessory dwelling units, manufactured homes, multigenerational housing, and thoughtfully designed single-family communities.

The demographic shift toward an aging population necessitates the availability of smaller, more accessible homes. By focusing on building enough homes to meet demand rather than merely addressing the obstacles in the way, America can cultivate an inclusive, equitable future where families can find suitable housing, older adults can age in place, and workers can remain near their communities. The time has come for leaders to prioritize housing supply over obstacles and take decisive action.