While some parts of the US have housing shortages, others have limited job opportunities

While some areas of the country are experiencing housing shortages and a severe affordability crisis, other parts of the country have been suffering from lack of employment opportunity.

Maybe this is one of the big problems in the overall economy, most of job opportunities seem to be concentrated in just a few areas, which makes housing in those select few areas more difficult.

https://www.theamericanconservative.com/urbs/why-cant-i-afford-to-live-here/

Housing has become expensive all over, at least if you want to be near a source of employment.

In some coastal areas, the cost of housing is ridiculous. Case in point: people in New York City will pay $1,800 for 98 square feet in a building where there is access to a kitchen, but otherwise just a room and bathroom, basically the size of a walk-in closet.

In other areas—like the rust belt Midwest and Great Lakes areas where the job opportunities are slimmer, there is shrinkage—more houses than takers. The same is true in Pittsburgh, which underwent a massive transformation from its industrial heyday, which after going into a long decline is now getting its footing back as an "education and medical" corridor. But that's attracting young graduates; not so much the middle class families that fled long ago. The result: 650,000 existing structures and only 350,000 people, according to 2008 numbers.

In these specific urban realities, the problem becomes getting rid of the glut of available dwellings—not to mention the aging infrastructure—which, if you include the fire and police and other services that maintain them all year after year, has become a burden on the taxpayers.

But in places where real estate markets are exploding, affordability is the critical issue. Prohibitive prices make it more difficult for people to move to places they prefer and harder for employers to find service workers and all the people who keep the high-priced urban areas humming.

For years it was possible to find housing that matched one's income. The usual markers were size, age of the house or apartment, and location. "Drive till you qualify" became the watchword in the 1960s for folks who worked in the city and were looking for middle-class, suburban life. It is still is a reality, though the distances have become longer and the commutes more expensive.

The Recession of 2008 saw the first real deflation of the real estate market since 1929. But this time the recovery of new construction was slow and began in the high-end market. There was no real incentive to build lower- and middle-end housing as long as a developer could get a fast and good return on a McMansion.

In metro areas experiencing a resurgence of economic growth, the lack of housing for middle and lower income families is a stark reality. Seniors and soon-to-be retired folks on fixed incomes are also struggling to find affordable places to live. Add the younger people just starting out, trying to establish a household. Even the requirements for renting are daunting. First month's rent, last month’s rent, and a month's damage deposit can be quite a bit when the average apartment is close to $2000.
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The article goes on to state that building up, beyond 2 stories, gets exponentially expensive, due to the building code requirement of an elevator, and the need for stronger structural integrity to support the weight of additional floors. So when it comes to affordable housing in the cities, it's not such a simple matter of just building up. The low income people who would live in these buildings can't afford what it would cost to build these new high-rise buildings.

Then the article goes into how local zoning restrictions limit the efficient use and design of new buildings and neighborhoods.

 

Cheaper Housing Main Reason for Lower Poverty Rates in Scotland

A new report published today by the Joseph Rowntree Foundation (JRF) finds that lower housing costs, particularly in the social rented sector, are the main reason for lower levels of poverty in Scotland when compared to the rest of the UK.

The assessment comes in an annual state of the nation report entitled ‘Poverty in Scotland 2019’ which looks at how poverty has changed over 20 years of devolution.

It highlights that although poverty rates before housing costs are similar across the UK, poverty is significantly lower in Scotland after housing costs are deducted – with the biggest difference for children.

The report states that “the announcement of the Scottish Child Payment earlier this summer shows how seriously the Scottish Government is taking its legal obligations on reducing child poverty.”

Whilst the Scottish Government has set ambitious targets to eradicate child poverty, UK government welfare reforms are set to increase child poverty to 29% in 2023/24, according to the Resolution Foundation.

The SNP has said this report shows that action taken by the Scottish Government – such as building 87,000 affordable homes since 2007 and introducing vital child poverty legislation – is making a real impact on tackling poverty despite UK wide Tory austerity cuts to the welfare system.

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https://welfareweekly.com/cheaper-housing-main-reason-for-lower-poverty-rates-in-scotland/