HOUSING AFFORDABILITY

Housing Affordability

Why No One Can Afford to Live Anywhere

The Crisis

Shortage: 3.8 million homes short of demand

How We Got Here

Supply Constraints

Builder consolidation: Few large builders, less competition

Demand Drivers

Corporate buyers: Institutional investors buying single-family homes

Policy Failures

No national policy: Housing left to fragmented local markets

Consequences

Economic drag: Housing costs consume productivity gains

AIP Solution: Multiple Pathways

Stability Accounts for Down Payments

Portability: Account moves with you—buy where opportunity is

No Income Tax Increases Affordability

Flexibility: Can afford to buy in more locations

Universal Healthcare Removes Job Lock

Retirement: Can retire to lower-cost areas

Alliance Development Reduces Migration Pressure

International: Development Fund reduces immigration pressure on housing

Complementary Reforms Needed

AIP helps demand side but supply constraints remain. Complementary reforms needed:

Institutional buyer limits: Restrict corporate single-family purchases

Projected Outcomes

Note: Full housing solution requires supply-side reforms beyond AIP

Discussion Questions

Is AIP sufficient for housing, or must it include explicit housing policy?

How do we break NIMBY political power?

Should Stability Accounts be usable for rental assistance, not just purchase?

What about high-cost areas where even AIP boost isn't enough?

How does housing policy interact with Alliance development?

Note: Housing is local and complex. AIP improves demand-side affordability but supply constraints require additional policy. This document is honest about limitations. Validators invited to assess whether housing needs explicit AIP component.