| Abstract: | Although there is a general agreement among housing analysts that affordability has gotten worse and that overall quality has gotten better, there is some debate on whether the supply of low cost housing is adequate. Based upon available data, this paper takes the view that many local markets have severe shortages of decent, low cost rental housing. After concluding that cash vouchers would not stimulate housing production, and that the unaided private market is not capable of meeting the demand, a preliminary comparison is made between the two previously tried housing supply strategies for low income people: private market with public incentives and direct production and ownership by the public sector. While a lack of systematic data hampers the analysis, the public housing program emerges in a stronger position than the publicly subsidized multi-family programs that depend on for-profit developers. However, low rent housing production by community and tenant groups presents a compelling and exciting new strategy that warrants further exploration and support. The paper concludes that a national program should be launched to promote community-based housing initiatives. |
