Lower the cost of Housing

Home ownership is a necessary part of the American Dream. Unfortunately, there is not enough housing in the US. In fact, it is estimated that we are short about four million housing units. That’s on top of the million and half or so new units that get built annually. 

As a result, the cost of home ownership continues to skyrocket and fewer and fewer people can afford to buy a home. That is the opposite of what we want. The best way to change this problem and drive housing prices down is to build more homes and the best way to do that is through a government funded program.

However, in America we view ‘affordable housing’ as ‘the projects’ - crime ridden, poor quality, with declining home values. And we assume the people that get these contracts are corrupt people with political connections who see government contracts as a money grab then cut corners and build soulless, ugly homes no one wants.

But it doesn’t have to be that way.

Singapore is renowned for its architecture. Home ownership rates are over 90%. It is a beautiful, clean, green city with almost zero homelessness and stable housing costs.

And 80% of the housing is built by the government.

Singapore is just one example. In Vienna Austria 60% of the population lives in publicly owned or subsidized housing. In Tokyo, Japan the government builds 140,000 new housing units every year. It can be done and done well.

And if it can be done and done well elsewhere, we here in America can and should do it better. 

So our goal should be to build an additional one million housing units per year of excellent housing, better than that built in Singapore or any of these other thriving cities, the kind desired by any family. It won’t be easy but this is America and we can do anything.

We’ll spare you the math but investing in housing impacts American families in two important ways. The first is that it should lower housing costs. More housing means less competition for available housing. That makes housing more affordable and lowers housing costs for families. This will, of course, depend on the details of the program enacted by Congress but we estimate that it could save the average family of four around $4500 per year.

The second way is that it creates jobs. Someone has to construct all these building. That means more work for plumbers and welders and painters. It means more work for crane operators and truck drivers. It means more work for accountants and architects and inspectors. More jobs means more competition for employees and more competition means higher wages.

And since we are going to do this better than anyone else because we are America and can do it better than anyone else, we’ll also be developing new technologies that will advance American leadership. That technology will be used on private construction in the US and will be in demand around the world. Again, that means more American jobs.