Colle Understanding the housing crisis

« Understanding the housing crisis ​ Overview > The housing affordability crisis is largely caused by a lack of available housing.

According to the *Center for American Progress* article *“Build, Baby, Build,”* housing costs are rising because the United States has not built enough homes to meet demand, and the article argues that increasing construction is essential to lower prices.

Similarly, *Harvard Magazine* explains that in cities like Boston, restrictive zoning laws limit housing supply, which makes homes more expensive, and that zoning reforms allowing higher density could improve affordability. Housing price trend The housing affordability crisis is a growing problem in both the UK and the US.

In England, nearly two‑thirds of working private renters struggle to pay rent, showing that even employed people face housing insecurity (The Guardian, Dec 2024).

In New York City, “affordable” housing can still cost $3,500 a month because affordability measures do not match local incomes (NYT, Nov 2024).

In the US more broadly, many workers are becoming homeless despite having jobs, as wages fail to keep up with rising housing costs (NYT, March 2025). These examples show that the crisis is not only about poverty, but also about systemic failures in housing supply, policy, and affordability definitions. un peu la meme que avant (Regulatory barriers are a major cause of housing shortages in both the US and the UK.

In New York City, building new housing is extremely expensive due to high construction costs, scarce land, and complex rules that prevent developers from creating enough homes (NYT, Nov 2024).

Similarly, in London, regulatory obstacles and lengthy planning processes make even available land difficult to develop, slowing projects and limiting supply (The Economist, May 2025).

These examples show that housing crises are not only caused by demand, but also by systemic regulatory hurdles that restrict the construction of new homes.) Ownership patterns Investment buying Housing affordability is increasingly affected by investment practices and gentrification. Several articles show that housing is now treated as a financial asset rather than a basic need.

An Associated Press article explains that investors are buying a growing share of US homes, often outbidding first-time buyers and making homeownership less accessible for working households.

A CNBC video shows how Wall Street firms purchase large numbers of single-family homes to rent them for profit, reducing the number of homes available to ordinary buyers.

In the UK, The Guardian reports that more than 138,000 properties in England and Wales are owned by offshore companies, many of which are not used as primary residences, worsening housing shortages.

Similarly, a Financial Times video explains how London has become a global destination for foreign and sometimes illicit money, with luxury real estate used as a safe investment, driving prices far above what local residents can afford. Gentrification: a boon or a bane? Gentrification is another key factor shaping the housing crisis.

A Guardian article from May 2025 describes a new form of gentrification in London where luxury developments replace family housing, forcing residents out and leading to the closure of local schools.

In the US, The Johns Hopkins News-Letter explains how the East Baltimore Development Initiative led to the displacement of long-term residents despite promises of neighborhood improvement. Finally, another Guardian article highlights that gentrification is often misunderstood, as it can improve urban spaces while also causing displacement, inequality, and the loss of local communities Exclusionary policies: from redlining to NIMBYism Housing affordability in the US is also shaped by political opposition, discriminatory policies, and long-standing tax rules.

A Forbes article shows how progressive NIMBY groups in cities like New York and Los Angeles block new affordable housing projects, even while claiming to support social justice.

A RAND article explains how California banned “crime-free housing” policies because they excluded low-income and minority renters.

Finally, the Opportunity Institute shows that California’s Proposition 13 has worsened intergenerational inequality by protecting existing homeowners while limiting housing supply and public investment Generational divide The housing crisis has deep economic and social consequences, especially for younger generations.

A Guardian article shows that many young New Zealanders are forced to move back in with their parents because they cannot afford rent or homeownership.

Similarly, The Economist explains that rising housing costs and insecure jobs have led more British adults to delay independence and continue living with their parents, highlighting a growing generational divide. Homelessness: trends, causes and remedies *1) “Homelessness in England has risen by 26% in the past five years” (The Economist, Jan 2025) This article reports that homelessness in England has risen sharply, with record numbers of people sleeping rough and many more living in temporary accommodation or unsuitable conditions.

Rising rents, eviction rates, and a lack of affordable housing contribute to this increase, putting pressure on local services and councils.

Official statistics show that the numbers experiencing homelessness have grown significantly compared to the past five years. *2) “Homelessness rises to a record level in America” (The Economist, Dec 2024) The article explains that homelessness in the United States reached record levels in 2024, with rising numbers of people without stable housing as rents outpace incomes and federal assistance programs expire or are reduced.

The lack of affordable housing and rising cost of living are key drivers behind this increase in homelessness across many states. *3) “We Found a Solution to Homelessness.

Now the Trump Administration Wants to Throw It Out.” (NYT, Oct 2025) This opinion piece argues that the “housing first” model — which places people into permanent housing without preconditions — is a proven solution to homelessness, but U.S. federal policy changes under the Trump administration threaten to cut funding for permanent housing and redirect support toward transitional shelters and work requirements.

Critics warn that these shifts could increase homelessness by.... »