affordable housing

This legislative session has culminated in a landmark victory for property rights and housing affordability in Texas. Thanks to the tireless work of advocacy groups like Texans for Reasonable Solutions, which championed this entire suite of bills, Governor Abbott has now signed four powerful pieces of legislation that represent the most significant pro-housing reform the state has seen in decades. This isn't a single, timid step; it's a coordinated, multi-front assault on the regulatory red tape that has driven up housing costs and limited options for Texas families.

For years, we've watched major Texas metros grapple with an affordability crisis born not of scarcity of land or lack of demand, but of an ever-growing thicket of municipal ordinances. These four new laws—HB 24, SB 840, SB 2477, and the capstone bill, SB 15—take direct aim at the root of the problem: artificial constraints on supply. Let's break down each of these strategic wins.

1. HB 24: Ending the "Tyrant's Veto"

One of the most pernicious, anti-growth mechanisms in Texas zoning has been the "protest-by-a-small-minority" rule, rightly dubbed the "tyrant's veto." Under the old law, if owners of just 20% of the land area near a proposed zoning change objected, it triggered a supermajority vote (three-fourths) of the city council for approval. This gave a handful of NIMBY ("Not In My Back Yard") neighbors disproportionate power to block new housing projects that a simple majority of elected officials, and likely the community at large, supported.

Championed by Rep. Dustin Burrows and Sen. Bryan Hughes, HB 24 fundamentally restores fairness to the process. The bill targets the most common use of the veto by raising the protest threshold for adjacent property owners to 60% and, crucially, removes the supermajority requirement for those protests.

The result: A small group of opponents can no longer single-handedly kill beneficial projects. This strengthens property rights for landowners who wish to develop housing and empowers city councils to make decisions for the good of the entire city, not just a vocal few.

Read the rest of this piece at Houston Strategies.

Tory Gattis is the Founder at BeSomeone - Talent Unbound PBC, and former CEO & Founder at Microschool Revolution. Tory is a McKinsey consulting alum, TEDx speaker, and holds both an MBA and BSEE from Rice University. In his spare time, he writes his long-running Houston Strategies and Opportunity Urbanist blogs for the Houston Chronicle, and writes and speaks as a Founding Senior Fellow with the Urban Reform Institute.

'Bedroom Reform' for Today's Housing Crisis

Tim W. Ferguson — Wed, 29 May 2024 10:31:04 -0400

Long Island, N.Y.’s East End has a housing price/supply crunch, like the United Kingdom. So it might want to look at an earnest argument out of the UK for addressing the scarcity by restricting or reallocating bedroom supply. (See this derivative post: https://medium.com/iipp-blog/meeting-housing-needs-within-planetary-boun...)

The scholars there found no actual shortfall of home square-footage in the British isles, but rather a hoarding of unnecessary bedroom space by a blessed slice of the population. Any Hamptonite (U.S. version) would quickly see how this applies locally, as McMansions with six or more bedrooms (nearly always with en-suite baths) are standard fare in new construction, and for only weekend or seasonal use in many situations.

Back in the UK, the policy wonks looking for “fair decarbonization of housing” measures acknowledge that some potential steps for redressing the bedroom imbalance carry obviously awkward implications. So they promote instead a tax on insufficiently justified sleeping space. (There’s a bit of Henry George in that.) However, this doesn’t fully capture the social dimensions of the UK problem, which is no longer Downton Abbey estates but empty nesters of more modest means who hang onto oversized residences for lack of preferred alternatives. Thus, it’s a “tenure” issue, and one aggravated by the cumbersome ritual of unfettered private-property ownership–it skews space toward older people with deeds.

If housing stock were better influenced by the state, bedroom space could be shuffled more easily among households as demographic needs change. The authors point to some Euro experiments. This more rational approach to domiciling appeals to certain academic minds, if not to the denizens of Long Island’s East End. One other reality check: The UK decarbonizers should make sure their own country’s “council” homes don’t share the static bias of New York City Housing Authority “projects.” Bigger apartments there, like those on fashionable stretches of Park Avenue, tend to stay with occupants who’ve aged beyond child-raising. Maybe, like the buyers of oversized Hamptons homes, they just wish to think the grandkids will come to visit.

See: https://timwferguson.com/2024/05/28/bedroom-reform-for-todays-housing-cr... H/T to Rent Free, the Reason magazine newsletter by Christian Britschgi, for flagging this UK item.

Shaving Time Off Suffolk County Homebuilding

Tim W. Ferguson — Fri, 12 Jan 2024 07:21:13 -0500

At the heart of N.Y. Long Island's Suffolk County, new Brookhaven town supervisor Dan Panico wants to remove processing steps, such as at the planning board, from new housing development. This is a first step toward significant new supply in one of America's tightest exurban markets. See: https://timwferguson.com/2024/01/11/long-island-supe-wants-to-build/

'Affordability' Near Hamptons...Or Maybe Not

Tim W. Ferguson — Sat, 23 Dec 2023 07:31:54 -0500

Long Island’s town of Southampton covers 295 square miles including a varied range of communities, some quite different from the village of Southampton that is familiar to seasonal visitors. One hamlet, called Riverside, is a pocket of relative distress, greatly Black and Latino-immigrant. It sits on the south side of the Peconic River, separating it from the more familiar Riverhead on the other side.

Sometimes Hamptonites lump the two together, though Riverhead is not part of Southampton town. That distinction has come to the fore as Southampton moves to bring development to Riverside—the first major such effort since Suffolk County opened a sheriff’s station, courthouse and jail there decades ago. Riverside has what so many East End communities say they need—“affordable” housing—and the town wants more of it there so as to contain the daily traffic throng to the Hamptons from points west (part of which, ironically, funnels through Riverside).

To do that it needs, among other investments, a big sewer plant. All well and good, but it turns out, as this latest useful report from the East End Beacon explains, this is not so welcome in Riverhead. There’s lots of news nowadays in these parts—the bridge between the affluent and preservationist South and North Forks of Long Island—and any transitions will merit further attention.

Los Angeles Housing Voucher Lottery: 7 Families For Each Waiting List Place

Wendell Cox — Tue, 08 Nov 2022 11:53:46 -0500

Writing in Laist.com, David Wagner reports that the City of Los Angeles opened its Section 8 rental voucher waiting list for the first time in five years. Section 8 is the nation’s largest affordable housing (subsidized low-income housing) program in the nation. The City limits its waiting list to 30,000 families. The applications totaled 223,000, more than seven times the number of waiting list spots. The applicant families include more than 500,000 persons.

A lottery will determine which of the applications receive a place on the waiting list by December 1. It has been reported in 2021 that the average wait time for a family on the City of Los Angeles wait list was 24 months.

Housing costs (both rentals and owned housing) have skyrocketed ahead of incomes across California for decades, as land use regulation has been made more restrictive, principally through state measures (See Chapter 2, Saving California: Solutions to the state’s biggest policy problems).

Wendell Cox is principal of Demographia, an international public policy firm located in the St. Louis metropolitan area. He is a founding senior fellow at the Urban Reform Institute, Houston, a Senior Fellow with the Frontier Centre for Public Policy in Winnipeg and a member of the Advisory Board of the Center for Demographics and Policy at Chapman University in Orange, California. He has served as a visiting professor at the Conservatoire National des Arts et Metiers in Paris. His principal interests are economics, poverty alleviation, demographics, urban policy and transport. He is co-author of the annual Demographia International Housing Affordability Survey and author of Demographia World Urban Areas.

San Francisco Loses Another 39,000 Taxpayers

Joel Kotkin — Wed, 21 Sep 2022 14:45:51 -0400

Since the days of the Gold Rush, California has been a magnet for those seeking wealth. A backwater barely a century ago, with just over 3 million residents compared to nearly 40 million today, the Golden State established dominance over everything from agriculture and film to space travel and the internet.

But new data suggests that the tide may be turning, and a rich hegira is afoot.

Researchers found that 39,000 San Franciscans who had filed federal tax returns for 2018 had moved out of the city before filing 2019 returns, taking away a net of $7 billion in income in one year. A soon-to-be released report from the San Francisco Business Times, sources tell me, will see a similar phenomenon in Silicon Valley.

Once able to hold onto its rich, the Golden State seems to be following the course of high-tax places like New York, Illinois, New Jersey, Massachusetts and Connecticut. For years, these cities and states have been oozing billions in tax revenues as wealthy residents fled to the likes of Texas, Florida, Arizona, the Carolinas and Tennessee. While California still lags behind New York State in the money-losing sweepstakes, it is catching up: in 2020 the state lost $17.8 billion in tax revenue, with the loss spreading into the Bay Area, whose tech-rich economy historically kept the state solvent.

Read the rest of this piece at UnHerd.

Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Roger Hobbs Presidential Fellow in Urban Futures at Chapman University and Executive Director for Urban Reform Institute. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Joe Biden is Making the Housing Crisis Worse

Joel Kotkin — Tue, 22 Feb 2022 18:11:23 -0500

As inflation continues to soar in America, few things have become more precious than hard assets like property. And with the stock market as unsteady as our political leadership, big dollars from Wall Street are pouring into real estate, snapping up both multi-family and single-family homes.

Rents are on a wild binge, up near 20% in the past year, while home prices have hit a record high. As people can no longer afford to buy homes, they have been forced into the rental market, driving up prices towards absurd levels in fashionable cities like New York, Los Angeles and San Francisco. Like a pestilence of its own, high rents are spreading to the realm of the “wannabe” places where the “creative class” types are moving to: cities like Miami, Austin, Nashville, and Las Vegas as well as more prosaic places such as Tampa and Memphis.

Read the rest of this piece at UnHerd.

To the Exurbs and Beyond in Vancouver

Wendell Cox — Mon, 17 Jan 2022 13:41:25 -0500

The Vancouver Sun reports on the dimensions of the urban to suburban, exurban and even rural exodus fueled by the pandemic. The first dimension is households taking advantage of the opportunity to regularly work remotely, which permits fewer physical commutes. This makes it practical for households to move to more space, both in housing and yards, such as to exurban Chilliwack, in the eastern Fraser Valley, where housing is severely unaffordable but much less unaffordable than in Vancouver, which rated as the second least affordable among 92 major markets in nine nations in Demographia International Housing Affordability 2021 (with a median multiple of 13.0 --- median house price 13 times the median household income.

The article also describes household movement of people from exurbs to even farther away, not only small metro areas, such as Kelowna and Kamloops but beyond to small towns like Quesnel and rural areas. Kamloops is 220 miles from downtown Vancouver (about 190 miles from the edge of the urban area, also called the population centre) and Quesnel is nearly 400 miles. Remote workers choosing locations such as these are likely to be able to work virtually all the time from home.

Mayor Tom Bradley appointed him to three terms on the Los Angeles County Transportation Commission (1977-1985) and Speaker of the House Newt Gingrich appointed him to the Amtrak Reform Council, to complete the unexpired term of New Jersey Governor Christine Todd Whitman (1999-2002). He is author of War on the Dream: How Anti-Sprawl Policy Threatens the Quality of Life and Toward More Prosperous Cities: A Framing Essay on Urban Areas, Transport, Planning and the Dimensions of Sustainability.

Demographia Housing Affordability in Canada 2021 Supplemental

Wendell Cox — Thu, 23 Dec 2021 16:07:31 -0500

Demographia Housing Affordability in Canada, assesses middle-income housing affordability (Section 1) using the Median Multiple,” which is the market rate median house price divided by the pre-tax median household income (gross income).

Read the full Report here: DEMOGRAPHIA HOUSING AFFORDABILITY IN CANADA

The Median Multiple is widely used for evaluating housing markets. It has been recommended by the World Bank and the United Nations and has been used by the Joint Center for Housing Studies at Harvard University. The Median Multiple and other price-to-income multiples (housing affordability multiples) are used to compare housing affordability between markets by the Organization for Economic Cooperation and Development, the International Monetary Fund, The Economist, and other organizations.

Historically, liberally regulated markets have exhibited median house prices that are three times or less that of median household incomes (a Median Multiple of 3.0 or less). Demographia uses the housing affordability ratings in Table 1.

Housing Affordability in Canada: The Context

Among the major markets, housing remained comparatively affordable from 1970 to the mid-2000s, though the Vancouver market had become severely unaffordable. Since then, however, housing affordability has deteriorated materially. Housing was generally affordable in Canada’s as late as the mid-2000s. For example, house prices have increased the equivalent of 7.7 years of median household income in Vancouver from 2004/2005 and 6.0 years in Toronto.

House price increases have been substantial in the other major markets. Montreal and Ottawa-Gatineau house prices have increased the equivalent of more than two years of annual median household income. Calgary and Edmonton, prices rose about the equivalent of one year.

This piece first appeared on Frontier Centre for Public Policy.