AURA, the urbanist group in Austin I’ve been so excited about, has adopted the language of “abundant housing.” The concept is simple: build enough housing for everybody who needs a home. Although abundance and affordability are intimately linked, the call for enough homes for everyone doesn’t require invoking affordability. It’s a strong statement of inclusivity and social justice on its own.
Abundant housing makes all housing more affordable
Even if you don’t buy my argument (and overwhelming consensus among economists, real estate people, etc.) that abundant housing leads to affordable housing, you should stand up for abundant housing because everybody deserves a home. But I’ll flesh out the link anyway. I’ve compared the housing market to a game of musical chairs. If you don’t have enough chairs to go around, the competition is going to be intense not just for the last few chairs, but for every chair. Similarly, if there aren’t enough homes to go around, the competition for homes will be intense up and down the market. This is the situation today in Austin and in cities throughout the country: rising prices, cash-only sales, homes selling sight-unseen. The competition for homes is intense at all levels; even those who can definitely afford some housing are forced to contend with rising rents. Abundant housing aims both to make sure those at the bottom have a place to live and everybody else isn’t subjected to the intense competition that makes our current housing markets so hard.
Targeted affordability isn’t enough
Affordable housing can refer to mandated Affordability or housing that’s just affordable. Whether the specifics of the affordable housing strategy are bond-driven Affordable Housing, Affordable Housing setasides in new development, or targeted relaxation of laws that only allow new housing that will likely be affordable (e.g. very small units), these strategies are all based around the idea that the best way to improve affordability is to create new housing that will enter the market at the lowest end. In its worst form, you see not only a preference for housing targeted at the cheapest end of the housing market, but opposition to the creation of net new housing because that new housing is at the higher end.
But in a game of musical chairs, the intense competition for chairs doesn’t come from the fact that there are too many thrones and not enough folding chairs; it comes from the fact that there aren’t enough chairs, period. If there are ten fewer chairs than there are contestants, whether you add ten thrones or ten folding chairs, everybody will now have a seat. In this view, discouraging people from adding seats because they aren’t targeted at the particular folks who lost last round is perverse; you are hurting those folks’ chances of finding a seat, not helping them. Abundant housing is built around the same idea: policy that allows new housing to be created easily will allow more homes to enter the market, enough that everybody can find a place to live. With the competition between buyers/renters being less intense, rents won’t rise as much across the market. Whether that’s done through small new units cheap enough to hit the middle-to-bottom of the market, bond-supported Affordable Housing units, or new luxury condos absorbing the demand from the richest, there will be housing for all.
Lack of abundant housing overwhelms Affordable Housing
Affordable Housing policy is necessary to help those who need it, even when there’s enough housing to go around. For the musical chairs analogy, in a game with as many chairs as contestants, an adult might find themselves next to vacant chairs designed for children; a contestant with a mobility impairment might not be able to reach a vacant chair because the path is blocked. This is analogous to a well-functioning housing market in which there are still some folks who need a hand, perhaps temporarily because some bad thing happened or they simply lack funds; perhaps permanently if they have a reason they will never be able to make rent. But these intervention strategies are overwhelmed when there are simply too few chairs to accommodate all contestants. If there are fewer chairs than contestants, no amount of targeted interventions will help. They merely result in a different set of folks going without a chair. But fixing the abundance problem, the Affordable Housing efforts can go back to serving specifically those who need it even when there are enough chairs to go around.