Via Sightline Institute:
How does a growing, prospering city stay affordable for all kinds of people? At the most basic level, when there aren’t enough homes, prices will keep rising. And when there are plenty of homes, it helps prices stay down.
It’s like a huge game of musical chairs. If there aren’t enough chairs when the music stops, someone is left out. When there aren’t enough homes for people who live and work in a city, everybody has to compete for what’s available and the rents go up until people are priced out. In the housing market, instead of being fast, you just need to be rich to stay in the game.
To fix it, we need more homes in all shapes and sizes. That means more cottages, apartments, duplexes, triplexes, condos, and mother-in-law units. More homes allows more people to stay and thrive in their communities. It means more people can afford to live near jobs, great schools, and transit.
Encouraging a variety of homes that fit a variety of people’s needs isn’t the only solution to keep rent and home prices down but it’s an essential foundation for affordability, the necessary building block on which all kinds of other community protections, anti-displacement measures, and neighborhood investments are built.
Our new explainer video gives a simple illustration to think about how building more homes helps keep prices down. Enjoy!