President Biden's recent shift in housing policy didn't come quickly. High housing costs have somehow crept up on Democrats, even though the housing shortage is long-standing, well-documented, and even worse in blue cities.
By facing the crisis head-on, Biden and his Democratic allies can demonstrate to voters that they are committed to expanding and strengthening the middle class and addressing its most serious concerns. Let's hope it's not too late.
The housing shortage is causing serious economic dissatisfaction. Meanwhile, wealthy communities from Cupertino, California, to Milburn, New Jersey, are doing everything they can to block construction, driving up the cost of renting and owning a home. These high prices are eroding wages and morale, forcing people into ever-longer commutes and crowded, substandard housing.
The housing shortage is clouding America's bright economic outlook, creating discontent and endangering Democrats in the next election.
With all the usual measures, the economy is recovering. Inflation has fallen to nearly 3% from high levels of the past several years. Wages are rising and unemployment is low. The worst economic impact of the pandemic is over.
But anyone looking to buy a home is mired in high costs. Experts believe rising home prices are part of the reason why 8 in 10 Americans in key battleground states view the economy as just “fair” or “poor.” . Limited housing supply prevents workers from benefiting from higher wages and from moving to higher-paying locations.
When people are facing difficulties, they blame those they perceive to be responsible. This helps explain the discrepancy between economic indicators and Biden's polling.
Instead of trying to convince people that the way they feel about the economy is wrong, Democrats must address the pain that working and middle-class people are feeling. Injecting positivity into online conversations, as Biden's team is trying to do by taking on economic prognosticators on TikTok and other platforms, will have its limits.
To his credit, the president has quietly worked on housing affordability throughout his term. The administration's Housing Action Plan, announced in July, provided funding to local governments to make it easier to build housing, among other growth-promoting measures. The administration also accelerated the conversion of commercial to residential properties and provided funding for affordable housing designed to be climate resilient. All of this helps reduce housing costs.
But in recent months, Biden has finally doubled down on making housing more affordable by increasing supply. said Neera Tanden, director of the Domestic Policy Council. “We know we need to increase the supply of housing to ensure that rents and home ownership costs come down.”
Democrats are beginning to see the need for a rallying cry to address economic anxiety and demonstrate the administration's focus on lowering housing costs. It's a message that resonates with a declining middle class, many of whom believe Democrats won't fight for them. This is a message that appeals to young people, minorities, and all other groups who are excluded from American prosperity. It's a message that brings Democrats back to talking about the economy, an area where voters still have more trust in Republicans.
Is Biden a supporter of YIMBY, or “Yes in My Backyard,” which advocates for increased housing supply? Whether he calls himself one or not, his research and rhetoric on this issue suggests that he is.
By publicly embracing YIMBYism as an ideology and policy, Biden aligns himself with a bipartisan majority of Americans who believe urban planning restrictions should be relaxed to allow more housing to be built. can be arranged. And he can send a signal to those struggling with housing costs that he supports them.
The housing issue provides an opportunity for Democrats to talk about rebuilding an America where the middle class thrives, grows, and expands. The government must show voters that it understands that current housing prices are unacceptable and will do whatever it takes to bring them down. Until more people believe they will someday be able to buy a home, pessimism about access to opportunity will continue, and so will the risks to Biden's re-election.
Laura Foote is the Executive Director of YIMBY Action and a member of the Board of Directors of Up for Growth.
