The American Housing Crisis: A Game of Musical Chairs

Image via Band Director

***

Many of us grew up playing the game of musical chairs; it starts as a lighthearted game with music playing, laughter, and for a moment, just enough chairs. However, as the number of chairs decreases and the music speeds up, people begin to scramble as they fight for a place to sit. The game always ends the same way—some people find a seat, but many are left with nowhere to go. Those left standing often consider it “unfair,” as the conditions change without warning and the seats they were counting on disappear. We may believe that musical chairs is a game left in our childhood; however, we see it played every day, competing for declining opportunities in the housing market.

For decades, since the Great Depression, housing in the United States has been a point of contention, with a now severe shortage of 4.7 million homes. While this issue stems from a lack of availability, housing also faces affordability challenges driven by restrictive policies, underfunded assistance programs, and renters blocked from any path to home ownership.

Housing shortages not only affect those looking to buy or rent housing but also significantly impact our broader economy. States with key economic outputs such as New York, California, and Florida, which typically have significantly higher median housing prices, are each facing more than a $20 billion loss in GDP since 2008. As a result, those who are unable to afford housing in cities where they grew up are forced to move elsewhere, with major cities losing thousands of residents as they move to the South for more affordable housing. This results not only in a loss of skilled workers and local talent, but also in reduced job creation and economic output.

The cost of buying a home has nearly doubled over the last decade, while wages have remained relatively stagnant. 70% of all low-income families spend more than half of their total income on rent, while the recommendation is that housing should be no more than 30% of total income. However, this is not possible for many families who are struggling to get by and are facing potential homelessness. There is no state in the U.S. where a person working full-time at the minimum wage would be able to afford a two-bedroom apartment, showing that this is not a salary issue, but a systemic housing problem.

Many believe the solution is simply to “build more houses” to allow the housing market to keep up with the growing U.S. population. However, as more players are added to the game, the number of spots decreases, forcing people to either relocate or risk homelessness, and resolving it involves confronting many complex issues. Currently, state and local governments hold the majority of power over housing; approval from zoning boards for land use is required before construction can begin, a process that, in addition to rising construction costs and climate vulnerabilities, for-profit developers often choose to avoid, thereby leaving areas that need it most underserved.

The housing crisis goes beyond just government policy—with 46 million renters in the country, some of whom may be looking to buy a home but are trapped by long-term leases, many are forced to pay rent controlled by landlords, without building equity, putting many in a position where they are locked out of homeownership entirely. Additionally, a majority of families, more than 75%, who are eligible for federal housing assistance do not receive any help due to a lack of program funding, a gap that leaves some of the most vulnerable families without a safety net.

Many of us may believe that musical chairs is a game of the past; however, we see it played constantly amidst the current housing crisis. As the U.S. population grows, the number of players increases; however, there are never enough chairs, and those who once considered themselves safe are left standing, vulnerable, and with no place to call home. In this situation, musical chairs are more than just a game; losing a round means losing everything.

***

This article was edited by Abigail D’Angelo.