Nearly every major U.S. city lacks an adequate supply of housing affordable to middle and working class families.  In cities like San Francisco, Chicago, New York, Boston and even Seattle, the dearth of affordable housing has reached crisis proportions.  The first time homebuyers and the middle class shut out of the urban housing market will quickly flee to the edges of suburbia in search of their so-called dream house.  While the limited supply of real estate in the most desirable urban areas is largely to blame, affordable housing advocates have also fingered the high fixed costs in developing or renovating housing, including outdated building codes that perpetuate the use of expensive materials and construction methods and land use restrictions that prevent more efficient use of land.  Land is the most expensive variable in the housing equation and any steps that can be taken to distribute that cost over more units would improve housing affordability.  This article describes various examples of innovative methods to fit more single family housing on city lots, including a charming, but modern house constructed in the “backyard” of another house in the Central District of Seattle.

While modern cities need to be vigilant about ensuring that long standing regulations and practices don’t unwittingly contribute to the exclusion of the middle class from urban areas, this debate has a circular pattern to it.  As I discussed previously on this site, recent studies have exposed the trap of focusing too closely on housing costs as a proxy for cost of living.  Middle class families may be priced out of certain housing within urban areas, but any savings from living in exurbia are lost through increased transportation costs.  These studies suggest, contrary to conventional wisdom, that it may be cheaper to buy that expensive house in the city than to buy a less expensive house 30 miles from work.  Families, though, continue to comfort themselves with the myth that suburbia took them in with an affordable house after the big city turned them away and conveniently ignore the reality of a depleted bank account.  We may decide that the middle class is getting squeezed by the rising cost of living, and that something needs to be done.  But let’s stop singling out the real estate market in our cities.  At least those markets are a true reflection of supply and demand.  Housing markets in the suburbs continue to hoodwink sticker-shocked homebuyers by hiding the cost of housing in other essential expenses like gas, tolls and car maintenance.

Urbanites know that the cost savings from living in the city are everywhere, especially if you relegate your car to a minor role.  In Portland, you can even save money when you move, as long as you use your bike.  SHIFT is a Portland-based organization that, among other things, helps organize “bike moves.”  Anyone interested in moving all of his or her belongings by bike can post their move date, and if enough people volunteer, a seemingly unimaginable task is suddenly handled with ease.  This very entertaining video, which was also shared with me by Bus Chick, not only shows how a bike move is accomplished, but captures the esprit d’corps that invariably accompanies the effort. I can’t imagine ever having that much fun with the Mayflower guys.

Photo Credit: New Homes Magazine, Inc.