The Truth about New Housing Construction: Affordable Housing, Gentrification, and Displacement

TLDRNew housing construction is often misunderstood, with misconceptions about its impact on housing supply, affordability, gentrification, and displacement. While some new buildings are affordable housing, others serve middle and higher-income residents. Research suggests that increasing the supply of new buildings, even market-rate ones, can decrease rents and the risks of displacement. However, gentrification and displacement are not the same thing. Building more affordable housing and implementing policies like rental assistance can reduce both displacement and gentrification. The main obstacle to building housing for everyone is wealthy neighborhoods that block new developments through single-family zoning laws.

Key insights

🏘️New housing construction includes both affordable housing and market-rate buildings.

🧱Increasing the supply of new buildings can decrease rents and the risks of displacement.

🌇Gentrification and displacement are not the same thing.

💰Building more affordable housing and implementing rental assistance programs can reduce both displacement and gentrification.

🛑Wealthy neighborhoods often block new housing developments through single-family zoning laws.

Q&A

Do all new housing constructions provide affordable housing?

—No, new housing constructions include both affordable housing and market-rate buildings.

Does increasing the supply of new buildings decrease rents?

—Yes, research suggests that increasing the supply of new buildings, even market-rate ones, can decrease rents.

Are gentrification and displacement the same thing?

—No, gentrification and displacement are not the same thing. Gentrification refers to demographic changes in a neighborhood, while displacement refers to people being forced to leave their homes.

How can we reduce displacement and gentrification?

—Building more affordable housing and implementing policies like rental assistance can reduce both displacement and gentrification.

What is the main obstacle to building housing for everyone?

—The main obstacle is wealthy neighborhoods that block new developments through single-family zoning laws.

Timestamped Summary

00:00The US is experiencing a shortage of homes, with a decreasing housing supply over the past decade.

00:14Housing prices have skyrocketed in the past year.

00:26The percentage of empty rental units is at its lowest in three decades, while rent prices continue to rise.

00:37New buildings often face opposition from communities, who associate them with gentrification and displacement.

01:45New buildings are designed to be affordable and meet cost, height, and safety requirements.

02:58Increasing the supply of new buildings, even market-rate ones, can decrease rents and the risks of displacement.

04:19New housing construction can lead to demographic shifts in a neighborhood without forced displacement.

06:29To reduce both displacement and gentrification, more market-rate and affordable housing is needed.

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