Can We Make Housing Affordable Without Lowering Home Prices? The Gregor Robertson Argument

Felix Dubois

6 min read

Post on May 25, 2025

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Increasing the Supply of Affordable Housing

The fundamental problem behind high housing costs is often a simple one: a lack of supply. Increasing the number of available homes, particularly those designed for lower- and middle-income families, is crucial to easing affordability pressures. This requires a multi-pronged approach targeting restrictive regulations and incentivizing development.

Addressing Zoning Regulations and Density Restrictions

Outdated zoning laws frequently hinder the creation of affordable housing. Many municipalities have zoning regulations that restrict the construction of multi-family dwellings, high-density housing, and accessory dwelling units (ADUs). These restrictions artificially limit supply, driving up prices for everyone.

• Outdated zoning laws: These often mandate minimum lot sizes and restrict the height and density of buildings, preventing the construction of more affordable housing options like townhouses, apartments, and condos.
• Relaxing regulations: Easing these restrictions can significantly increase the number of available units. Cities like Minneapolis, which significantly reformed its zoning regulations, have seen a positive impact on housing supply and affordability.
• Density bonuses: Offering density bonuses to developers who include affordable units in their projects incentivizes the creation of more affordable housing options within new developments. This is a powerful tool for increasing density and affordability simultaneously.

Relaxing restrictive zoning is not simply about allowing more building; it's about creating a diverse range of housing options that cater to a wider range of budgets and needs. By reducing limitations on density and building types, we can create more opportunities for affordable housing without compromising the character of existing neighborhoods.

Incentivizing the Construction of Affordable Housing Units

Governments can play a critical role in boosting the supply of affordable housing by incentivizing its construction. This doesn't necessarily mean direct subsidies for every unit, but rather creating an environment where developers are encouraged to build affordable housing.

• Government subsidies: Direct financial assistance can lower the cost of development, making affordable housing projects more financially viable.
• Tax breaks: Offering tax breaks or exemptions to developers who build affordable units can incentivize their participation in the creation of affordable housing stock.
• Expedited permitting processes: Streamlining the permitting process can reduce the time and costs associated with getting projects off the ground, further boosting the number of affordable units.
• Inclusionary zoning: Policies requiring a percentage of affordable units in new developments ensure that affordability is built into the system.
• Public-private partnerships: Collaborations between government and private developers can leverage resources and expertise to build affordable housing on a larger scale.

By utilizing a combination of these strategies, governments can create a more favorable environment for the creation of affordable housing, fostering both increased supply and improved affordability.

Innovative Financing and Housing Models

While increasing supply is crucial, innovative financing models are equally essential for achieving affordable housing. These models aim to make homeownership and rental more accessible, even when market prices remain high.

Exploring Community Land Trusts

Community Land Trusts (CLTs) offer a unique approach to affordable housing. In this model, the land is held in trust by a non-profit organization, while the houses built on that land are sold or rented at affordable prices. The land remains permanently affordable, preventing escalating property values from pricing out residents.

• Permanent affordability: CLTs ensure that housing remains affordable in perpetuity, protecting residents from rising market prices.
• Community ownership: The land is owned by the community, preventing its use for speculation and ensuring long-term affordability.
• Successful examples: Many successful CLTs exist across North America, demonstrating the viability of this model.
• Potential challenges: Securing land and funding, as well as navigating legal and regulatory hurdles, can present challenges.

CLTs offer a powerful tool for creating truly affordable housing communities, providing long-term stability and affordability for residents.

Rent Control and Stabilizing Rent Increases

Rent control, which limits how much landlords can raise rents, is another strategy often considered to increase affordability for renters. However, its effectiveness and potential drawbacks require careful consideration.

• Pros: Rent control can protect tenants from drastic rent increases and displacement.
• Cons: It may discourage new housing construction and reduce the incentive for landlords to maintain their properties. It can also lead to shortages in rental units, potentially causing further issues.
• Different models: Various models of rent control exist, with varying degrees of effectiveness and potential downsides.

While rent control can provide short-term protection for existing tenants, a balanced approach that considers its potential consequences is vital.

Exploring Shared Equity and Co-housing Models

Alternative ownership models can significantly improve affordability. Shared equity allows buyers to purchase a portion of a home's equity, reducing their upfront costs. Co-housing involves shared ownership and responsibilities, significantly lowering individual housing costs.

• Shared equity: Reduces the financial barrier to homeownership for many.
• Co-housing: Creates communities with shared resources and responsibilities, lowering individual housing expenses.
• Suitability: These models are best suited to specific demographics and community structures.

These innovative models offer viable paths toward greater affordability and accessibility to housing, catering to diverse needs and lifestyles.

Addressing Systemic Issues Contributing to High Housing Costs

Beyond supply and financing, addressing systemic issues is crucial to achieving long-term affordable housing.

Reducing Barriers to Affordable Housing Development

Numerous barriers often hinder the development of affordable housing, including lengthy permitting processes, high construction costs, and a shortage of skilled labor.

• Streamlined permitting: Simplifying the permitting process can speed up development and reduce costs.
• Innovative construction techniques: Utilizing technologies like modular construction can reduce construction time and expenses.
• Workforce development: Investing in training programs can address labor shortages in the construction industry.

Overcoming these barriers is essential to making affordable housing projects more feasible and cost-effective.

Tackling Speculation and Investment in the Housing Market

Speculation and investment in the housing market can significantly inflate prices, making homes unaffordable for many.

• Increased taxes on vacant properties: Discourages investors from holding properties vacant.
• Regulations on foreign investment: Can help prevent artificial price inflation driven by external investment.

Addressing these systemic issues will help stabilize the housing market and make housing more accessible to a broader range of people.

Conclusion

This article has explored several strategies for achieving affordable housing without necessarily lowering home prices, inspired by the progressive approaches of Gregor Robertson and others. Increasing supply through policy changes, implementing innovative financing models like community land trusts and exploring shared equity, and tackling systemic issues like excessive speculation are all key steps toward creating a more just and equitable housing market. While lowering home prices might offer immediate relief, long-term sustainable solutions require a multifaceted approach focusing on accessibility and affordability. The pursuit of affordable housing demands innovative thinking and collaborative efforts from governments, developers, and communities alike. Let's work together to achieve a future where quality, affordable housing is accessible to all. Learn more about innovative solutions for affordable housing and how you can get involved today!