New housing is expensive, but the way to affordability is to build more of it.
It's a common refrain: "We need to stop building expensive housing--we need to build housing that's really *affordable*".
I think when people hear something like "build affordable housing", they imagine that if builders would just cut a few corners--use some cheaper materials, leave out the exercise room--that they could build brand new apartments that are cheap right from the start.
But that's not how it works. New construction is expensive. The only way the resulting apartments will be cheap is to subsidize--and then ask your tenants for tax returns and stuff to make sure your subsidy is going to people who couldn't afford the rent otherwise.
So, what to do for all those people that would like to live in the city they work in, can't afford new market-rate housing, but also wouldn't qualify for income-limited housing?
What you do is to realize that brand new housing is just a small part of the market, and that the older housing can be cheap--IF (big if!) there's enough of it to go around. And that the way we get there is to allow people to build. Yes, the new housing will always be the most expensive, but it's what allows us to keep up with demand.
Rephrase that common refrain as "we can't build any new housing, new housing is too expensive", and I think you'll see the problem.
But I'm also glad we're building more affordable housing. We should help everyone we can, and this is one of the ways to do it. Just don't think it's a cheap thing to do.
And, note, the two aren't exclusive, quite the opposite: allowing more market-rate housing makes it easier to build more affordable housing, by contributing tax base and infrastructure.
We're all in this together.
Reference: Why do affordable Ann Arbor apartments cost over $200M to build? Project explained.


