ABSTRACT
This chapter examines the significance of housing affordability in American society, what accounts for the decreasing affordability of housing, and past, contemporary, and possible policies that impact housing affordability for American households. It also examines the central challenges faced in addressing the housing affordability problem. How should government intervene? How should government balance the social and economic goals of housing? Housing affordability is partially determined by household incomes. In general, housing costs are dependent on the quality and quantity of housing in a market, government regulations, and sociocultural factors. As housing becomes less affordable across all sectors of American society, researchers, stakeholders, and policymakers continue to debate how to address housing affordability. Affordable housing policies weigh both the social and economic benefits of housing to varying degrees. Two central questions guide affordable housing policy: (1) how should government intervene to provide affordable housing?; and (2) how should government balance the social and economic goals of housing?.
