assessing affordability by looking only at
housing prices.
That means reducing income inequality
by investing in the infrastructure that
attracts good jobs and stable industries to a
city and region. It means developing better
transportation options, better schools,
better healthcare systems, and so on. None
of these is directly connected to affordable
housing. But they all have an effect on levels
of inequality, which determines whether
housing is truly affordable.
“We have to be thoughtful about how
we increase the supply of housing,” says
John Marron, lead author of the report. “And
we have to make sure that we allow people
to partake in the housing market—getting
access to credit, increasing their savings,
and turning that into greater wealth. And
that means taking a holistic approach that
incorporates a range of strategies.”
Educational programs that teach
financial literacy can also have a
dramatic effect, especially since credit
ratings are now used for many purposes
beyond opening credit card accounts and
getting loans.
“Credit scores have become so
important in recent years as a benchmark
that a lot of different sectors are using,”
says Christie Gillespie, vice president of
community impact for United Way of Central
Indiana. “Insurance companies will now ask
for it. I’ve heard of employers asking for a
credit score. So, a number that was used
for a specific purpose decades ago is now
being used for multiple purposes that can
really impact a family’s life.”
8
When more people have access to
truly affordable housing, it sets in motion
a virtuous cycle: Better housing promotes
health and prosperity for the individual,
which feeds into healthier and more
prosperous communities, which benefits
everyone. That kind of synergy between
individual and social well-being isn’t
captured in statistics that focus solely on
housing prices. But it’s the great payoff for
creating a truly affordable housing market.
“The more you increase
access and reduce the
cost-burden on families,
the more you allow
people to invest in
their education, their
retirement, and their
well-being.”
— John Marron
report author
“The more you increase access and
reduce the cost burden on families,”
Marron says, “the more you allow people
to participate in a virtuous cycle, where
they have more money to invest in their
education, their retirement, and their wellbeing. If you can reduce the cost burden
of housing, it opens up a whole lot of other
opportunities for wealth building.”