Job growth has been on the rise across the country. Various occupations in a number of fields are projected to grow by double-digits such as nursing, welding, and court reporting, the latter of which is expected to grow 10% between 2012 to 2022.
Yet the American housing market has been unable to keep pace. According to Curbed, only 10 metro areas across the country produced enough new housing to match job growth between 2005 and 2015. That leaves the remaining 40 areas with a significant shortage of housing.
“Even many cities that lost a significant number of jobs during the recession have not been producing enough new housing during the recovery,” reports Apartment List.
In a study, Apartment List found that the cities with the most job growth but lack of housing were San Jose, CA; Seattle, WA; San Francisco, CA; and Denver, CO. On the opposite side of the spectrum, where there’s too much housing and not enough job growth, there are cities such as Detroit, MI and Cleveland, OH.
Much of the burden of housing comes from providing for the population living in the center city. According to Apartment List, the center of these metro areas is often where job growth occurs the most.
However, when housing units are created in order to make room for this growing population, the units are added to the suburbs surrounding the city area. This either leaves those new to these metro areas without housing or with long commute times.
Fortunately, there are six possible solutions to solving this housing crisis. According to the Washington Post, six lawyers interviewed a series of housing experts to come to the conclusion that the crisis may be solved by:
- Surveying the public land to find more places for building houses
- Investing in housing production trust funds
- Reducing the exemptions from inclusionary zoning laws
- Investing in single units on single lots
- Encouraging businesses to keep employees in municipal limits with tax incentives
- Reduce rapid rehousing
While job growth is incredibly beneficial to the economy, the lack of housing for those increasing populations is becoming dangerous. This is especially true regarding the rise in American homelessness, which has been increasing due to not only the lack of housing but also the lack of affordable housing.
Consequently, should these metro areas invest in significant housing production it’s important that they keep in mind the necessary need for lower rent. Otherwise, many low-income and middle class families who may be able to initially afford units created in rapid rehousing programs will eventually be unable to afford the increasing rent.