3 Ways to Make Housing More Affordable
How can the US address a severe lack of affordability in housing?
The cost of housing is on the rise and in many cities, affordable housing opportunities are all but impossible to find. At all price ranges and income levels, the ever-increasing price of buying a home is putting pressure on buyers across the country. In a time when demand for homes shows no sign of slowing, how can we drive the cost of housing to more affordable levels?
Zoning Changes
One factor keeping supply too low in many cities is zoning. Without the ability to use available land, subdivide, or build certain types of residences in some areas, there’s a lower chance of closing the gap between supply and demand and effectively driving home prices down.
Rules like density and height restrictions make it difficult to build multifamily housing especially, stagnating building for affordable options. Many cities, like Charlotte and New Orleans, have introduced local initiatives to ease restrictions.
Tax Incentives
Another high-level way to alleviate the supply and demand tension is to offer tax incentives to developers and independent builders for building more homes. These might range from tax breaks for constructing low-income housing units, incentives for revitalizing old and unlivable properties, or tax credits for those who choose to build their own homes.
Adding incentives to help offset the costs of building will help inventory catch up with demand, slowly but surely.
Build More Homes
The bottom line and the obvious takeaway from a quick supply and demand analysis is that we simply need more homes. Homes of all types, from multifamily affordable housing to luxury homes, are simply too sparse in most areas to keep up with the volume of interested buyers. For many families, setting out to buy a home involves months of back-and-forth, rejected offers, stretched budgets, and unpleasant sacrifice.
That’s why many people are turning instead to home building. In high-demand neighborhoods near downtown areas like Charlotte and Raleigh, trying to navigate the market of existing homes is frustrating at best and futile at worst. Some families turn to tract or spec homes, but there are new options on the horizon.
Custom building is picking up steam as the process to build becomes easier and more accessible. With solutions like Atmos offering web platforms ready to integrate your design and layout ideas into your dream house, building a home has never been easier.
Ready to get started building a custom home of your own? Prioritize your needs and build to fit your lifestyle when you work with Atmos.
