Housing
Housing
The United States faces a significant housing shortage that contributes to the financial insecurity of millions.
Rather than a source of financial insecurity, how can we transform our housing system into a foundation for economic empowerment and opportunity?
The United States is 4 million homes short of meeting national demand, a shortfall that has almost doubled over the past decade. [1]
This undersupply contributes to rising housing costs which force working-class families to spend an unsustainable portion of their income on rent and pushes many households into neighborhoods with high poverty rates.[2] Research demonstrates that living in areas of concentrated poverty makes it harder for kids to rise up the income ladder.[3] Housing cost-burdens are also rising for middle- and higher-income families, while rising housing costs have led to the American Dream of homeownership becoming increasingly unattainable narrowing pathways for families to build wealth.[4]
Of the over $200 billion that has been invested annually in housing in recent years, only a fraction supports projects affordable for working-class families.[5] Innovative models capable of significantly boosting the supply of affordable housing exist but struggle to attract capital to scale. New policies, programs and financing tools are needed that redirect private capital into projects that promote financial stability and homeownership, and help build strong, resilient communities.
Lafayette Square Institute will continue working directly with stakeholders from across the housing policy ecosystem to identify and develop public policies at the local, state and national levels that effectively leverage private capital for public good. Our goal is to create a policy ecosystem that enhances the efforts of mission-aligned operators and incentivizes institutional capital to help scale the innovative housing models that have the potential to effectively combat the affordability crisis and increase economic opportunity for all Americans.
To find ways to collaborate and support our efforts on housing-related policy matters, contact David A. Williams (williams@lafayettesquare.com).