Housing
Why housing costs so much — and what policy can (and can't) do about it.
of renter households in the US are cost-burdened (paying over 30% of income on rent)
Source: Harvard JCHS, 2024
Housing affordability sits at the intersection of land-use law, construction economics, and local politics. In most high-demand American cities, housing costs have risen far faster than wages for decades — not because of a single villain, but because of layered constraints on supply combined with sustained demand growth.
The core economic tension is between short-run protection of existing residents and long-run expansion of housing supply. Rent control, zoning rules, inclusionary mandates, and building codes each represent a choice about that tradeoff. Understanding housing policy means understanding that choices which help current residents can make it harder for future residents to find affordable housing.
Evidence increasingly points toward supply-side reforms — allowing more density, streamlining permitting, reducing parking minimums — as the most durable path to affordability. But supply alone is insufficient for the lowest-income households, who need direct rental assistance or deeply subsidized units.
- →Why is housing so expensive in major cities?
- →Does rent control actually help renters?
- →How do zoning laws affect housing supply?
- →Who benefits and who loses from upzoning?
- →What role should government play in housing markets?