The Market Alone Can't Fix the U.S. Housing Crisis.

The United States is currently experiencing a housing crisis, with high housing costs posing a significant problem. This has negative effects on the economy, making it challenging for businesses to attract talent and hire workers. Vice President Kamala Harris has proposed a plan to tackle the issue by addressing the housing supply problem and regulating rents. However, there is a debate over whether simply liberalizing zoning rules and relying on the market can effectively solve the crisis. Some argue that the market power of developers and landlords, as well as collusion among them, contribute to high housing costs. They believe that government intervention, such as antitrust enforcement and price regulation, is necessary to fix the housing market. Merely relying on the profit motive and private sector incentives may not be sufficient to increase the housing supply. While liberalizing zoning regulations can have a modest impact on housing supply, other factors, such as expected profits, also play a role in private sector housing construction. The article explores the housing crisis in the United States and contends that liberalizing zoning rules alone will not solve the problem. It highlights the role of developers in acquiring land for future development and the consequences of large-scale acquisitions by asset managers. The article also discusses the negative effects of upzoning on communities, particularly on poor and working-class Black and brown communities. It suggests that stronger public governance, public planning, and social housing are necessary to address the housing crisis. The article emphasizes the need for ambitious public action from federal, state, and local governments. [Extracted from the article]