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While this piece provides an important part of the solution - supply - it's simply not sufficient.

True, but it is necessary. Any discussion about affordability that doesn't start with the necessary (if not sufficient) bit of adding more supply isn't much of a solution.

The market builds to the high end, and leaves most moderate and lower income working households without options they can afford.

There's nothing that ensures the market will only build for the high end. The market will build for the middle if it is allowed to do so, and if the cost of construction isn't too high (or the approvals process too long).

We also need more supply so that the definition of 'affordable' changes. There's no inherent reason for market rate prices to be so expensive. Other cities with more efficient housing markets show what is possible - if the market-rate prices are lower (thanks to more efficient markets that can more freely add to the housing supply as demand warrants), then the market-rate rents will be affordable to a much larger portion of the population. This allows resources for below-market-rate housing to be focused on people who really need it.

by Alex B. on Dec 19, 2012 3:23 pm • linkreport

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