Why affordable housing isn't affordable

Posted by $ blarman 9 years, 4 months ago to Business
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Bloomberg is notorious for pretending government is the solution rather than the problem and housing is no exception. The problem of not enough cheap housing stems from several regulations and regulatory climates - not from income levels. It used to be that on the US Census records, many were listed as "Boarders" - ie people who stayed in someone else's home and paid a small fee to have their meals provided and laundry done. Government did away with this source of cheap housing by mandating hospitality permits for such activities at the behest of the hotel industry - who they then began to hit with large fees for water and energy consumption!

Next you have zoning boards, who decide whether or not a particular property can house a residential, industrial, or commercial entity. And they pay property taxes based on their zoning, incentivizing government to push people into the higher-tax commercial and industrial areas.

What other ways can you think of that contribute to the lack of affordable housing?


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  • Posted by TheOldMan 9 years, 4 months ago
    "Affordable" housing is simple to achieve. All it takes is for the "oh-so-concerned" crowd to sell their home(s) for half of the appraised value. Oh wait, you mean the "oh-so-concerned" crowd wants someone else to pay for it. My mistake.
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  • Posted by $ Olduglycarl 9 years, 4 months ago
    As witnessed during my 64000 years on this planet, there was a drive by government to corral poor people into our cities only to have to rebuild these housing units because no one took care of them.
    I would add few more problems ...union wages and regulation on licenses plumbers, electricians and everyone else in the construction industry.
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  • Posted by $ allosaur 9 years, 4 months ago in reply to this comment.
    Now why would you say that when Joe Biden said we can spend our way out of debt?
    And that was way back when that silly Tea Party got born..
    Now we have Crooked Cackles promising to extend the screaming like bloody hell wonderment successes of the Commander Of Grief's hope and change eight years.
    What's wrong with you? Don't you know we have to spend our way out of debt?
    Subsidizing moochers is a plan. And a jimmied dandy way to get votes also.

    http://www.usdebtclock.org/

    (Psst! +1)
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  • Posted by term2 9 years, 4 months ago
    The gross building department regulations. Between inspections, and inspectors bent on being power hungry, its a mess.

    Two examples from building a house in Las Vegas:

    I was forced to put in three in-floor electrical outlets at $150 each including labor right in front of a picture window that I would never put furniture or electrical items in front of.

    I was forced to redo all the can light wiring that I installed because there was a loop of extra wire that I specifically put between the can itself and the last wire staple. The regulation said there could be no slack. I put the slack in there so that if there was a problem with the can light, I could more easily repair it.

    Useless regulation, resulting in rework and re-inspection.

    After living in the house for 4 years, an inspector decided that the septic tank system that THEY had approved earlier before it was installed- was TOO SMALL. It was 2000 gal capacity, and they wanted 2200 gal capacity. It cost me $20,000 to tear it up, have it sanitized and removed, and a new larger septic tank installed.

    You can bet i want to recoup my $20,000 when I sell the house.
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  • Posted by $ WilliamShipley 9 years, 4 months ago
    The casual assumption in the article that government subsidies are a legitimate part of building is appalling. If the government has to subsidize it, it's not affordable, no matter how much it costs to rent -- the renter isn't really affording it.
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  • Posted by salta 9 years, 4 months ago
    In the UK, it is very difficult to obtain planning permission to build any house, unless you "know someone" on the planning council, or engage a lawyer who does. That is the main way housing supply is restricted, which keeps prices high.
    Most government programs to increase home ownership focus on helping people afford their expensive house, never on increasing supply so that prices come down. Drop in prices would cost too many votes.
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  • Posted by mminnick 9 years, 4 months ago
    I have a feeling that "affordable housing" wa on Rand's mind some of the time. One of her major protagonists (Howard Roark, "The Fountainhead) discusses the difficulty and problems associated with t. he states "I've always wanted to solve this problem" and multiple other comments with the book.
    It was difficult when she wrote the book and is even more difficult now with realestate prices being what they are, even after the bubble burst.
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  • Posted by freedomforall 9 years, 4 months ago
    I guess it has nothing to do with the banksters artificially driving up real estate prices to save their sorry looting asses from bankruptcy.
    No, that would never happen.
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