It is no secret that Americans continue to be squeezed by high housing costs. President Trump and Congress recognize the need to solve this kitchen table issue. Their biggest roadblock? Housing affordability is driven largely by state and local policies that limit supply and drive up costs, leaving Washington with relatively few effective tools at its disposal.
A bipartisan housing bill snaking through Congress, if done correctly, can make a difference, but there are better ways to build more housing.
Rents and mortgages have ballooned in many areas due, in large part, to government-imposed barriers that make it nearly impossible to build. This includes requiring apartment buildings to have parking lots, height restrictions to reduce shadows on streets, and years-long environmental reviews—all of which prevent builders from bringing units online in an efficient and cost-effective manner. New York City, the model for how not to build housing, suffers from a number of harmful policies like rent control and a tax credit for builders that construct apartment buildings under 99 units.
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