What Happened to New York City Public Housing, and How Can We Fix It?
This article was originally published on Common Edge.
The U.S. has a long tradition of republicanism and laissez-faire capitalism that has not favored strong federal housing policy or intervention in the housing market. Policymakers have believed that private enterprise could best provide sufficient housing and that, as with healthcare and education,[1] government involvement would bring in “socialism” and undesirable control of the free market. There are two major exceptions to this tradition: the 1937 National Housing Act, a result of the devastation of the Great Depression, and the “war on poverty,” initiated by the Johnson administration in the mid-1960s.[2] Successful as these programs were, subsequent federal housing policy has mostly been aimed at undermining them, through either malice or neglect. Instead, federal policy has mainly sought to promote home ownership, the American dream, but that approach was eviscerated by the collapse of financing due to the subprime loan crisis and its aftermath. The result is that there is currently virtually no cogent federal housing policy. Thirty-five million Americans live in substandard housing; a much larger number devote 50% of their income to a roof over their heads. Housing construction is at a historic low, and construction costs have risen so high that they are well beyond the means of the average citizen.