Cities and Developers Are Working Together to Increase Housing Supply

Housing affordability has become one of the most persistent economic and political challenges in the U.S., and city governments are increasingly looking to the real estate industry for solutions. Rents surged in the years following the pandemic, homeownership slipped further out of reach for many households, and the pressure on local leaders has only intensified. While there are a range of policy ideas being tested, from rent control to subsidies, there is growing alignment around a simpler reality. The most direct way to improve affordability is to build more housing.

That has not always been an easy message to act on. Local opposition, zoning constraints, and rising construction costs have made it difficult to add supply at the pace needed. But in some markets, a combination of policy support and industry execution has started to shift the trajectory. “Austin has been the poster child, they have been able to build a lot of apartments in a short amount of time and are really seeing affordability gains,” said Jay Parsons, Economic Advisor at JPI...

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RSK: And they will both need to give in a little to get things moving forward.