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The Market Alone Can’t Fix the U.S. Housing Crisis

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Unaffordable housing is a drag on regional and national economies. In areas where housing costs are high, employers end up effectively transferring significant sums to landlords as the cost of attracting talent.

But what will it take to fix this problem? Will market-based solutions suffice? If not, what kinds of interventions are necessary? Recent research shows that the market itself needs to be fixed. Any plan to overhaul the housing market needs to, first, confront the power of landlords to raise rents. Second, it requires rethinking public governance of housing markets behind simplistic prescriptions to just free the housing market from government regulation, assuming lower rents will follow.

Shelter is a basic human need and unaffordable housing is — and should be — a national scandal.is the Open Markets Institute’s Chief Economist, researching the affect of corporate power on workers, small businesses, and other groups. He received his PhD in economics from the University of Massachusetts Amherst in 2019. Prior to coming to Open Markets he worked at Workers United, SEIU, the Strategic Organizing Center and the Data & Society Research Institute.

 

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