Armand Domalewski, a prominent voice in the Yes In My Backyard (YIMBY) movement, recently asserted on social media that restrictive building policies, rather than a lack of funding for social programs, are the primary cause of unaffordable housing. In a tweet directed at "@RealPPPolitics," Domalewski stated, > "the reason housing is unaffordable is because we make it very hard to build, the social goals you talked about are important but we should fund them through broad taxes, not taxes on the thing we have a shortage of." This statement underscores a growing debate on how to address the nation's housing crisis.
The United States faces a significant housing deficit, with recent analyses from Zillow indicating a shortage of approximately 4.5 million homes in 2022, an increase from 4.3 million in 2021. This shortfall contributes directly to escalating housing costs and reduced affordability across the country. Experts from organizations like Freddie Mac and the National Low Income Housing Coalition also report substantial housing gaps, particularly for affordable and low-income rental units, with estimates ranging from 3.8 million to over 7 million units.
Domalewski, co-founder of YIMBY Democrats for America, has consistently advocated for easing zoning restrictions and other regulatory hurdles that impede new construction. He argues that current policies, including certain taxes on housing, inadvertently worsen the supply problem. These taxes can include transfer taxes, "mansion taxes" on high-value properties, or levies on vacant homes, which are sometimes earmarked for affordable housing initiatives or community development.
While such taxes aim to generate revenue for social goals, Domalewski suggests that taxing a commodity already in short supply is counterproductive. Instead, he proposes funding social programs through broader tax bases that do not disincentivize the very construction needed to alleviate the housing shortage. This perspective highlights a tension between immediate revenue generation for social housing and long-term strategies for increasing overall housing supply.
The debate centers on whether policies should prioritize direct subsidies for affordable housing, often funded by specific housing-related taxes, or focus on deregulation to boost market-rate construction, with social programs funded through general taxation. The ongoing housing crisis necessitates a comprehensive approach that addresses both supply constraints and the needs of vulnerable populations, balancing various policy tools to achieve widespread affordability.