unaffordable housing

Blue State Housing Crisis is Costing Democrats Voters

Joel Kotkin — Fri, 16 May 2025 11:58:00 -0400

Amid the talk about tariffs and other Trumpian foibles, little attention has been paid to America’s festering housing crisis. This could prove a more lasting political issue in the US, as well as throughout much of the West.

These trends are the focus of a new report (to which I contributed an introduction) on global housing prices by Wendell Cox. High housing prices, he notes, are widely linked to strict regulatory policies, mostly seeking to hamper suburban growth and force development into urban cores. Almost all the US cities with the highest prices — San Francisco, Los Angeles, and San Diego — have enacted these urban containment or compact city strategies, which force people to live in denser, smaller, and more expensive inner-city housing.

Such approaches are widely popular with planners, progressives, and green activists. However, by restricting development on the more affordable suburban fringe, they drive up housing costs across entire metropolitan areas. This has deepened a stark and unprecedented divide between US regions. In much of the country — especially the Midwest, parts of Pennsylvania, and the South — home prices remain affordable, with median prices roughly three times the median income. By contrast, in coastal California and much of the Northeast, that ratio has surged to around nine to one.

All of this has turned housing into a potent political issue. In a Gallup survey last month, Americans ranked housing as their top financial worry behind inflation. In a Harvard poll of 18- to 29-year-olds last year, housing ranked as the third-most important issue overall, after inflation and healthcare. Meanwhile, around 65% of California residents consider housing costs a major concern — an astonishing figure.

Prices also affect levels of homeownership, long a linchpin of middle-class aspiration. January home sales were down 5% from last year’s dismal numbers. Record numbers of first-time buyers are stuck on the sidelines as housing affordability stands at its lowest level in 40 years, and one in three pay over 30% of their income in mortgage or rent.

The young — tomorrow’s voters — are the most directly hit. According to US Census Bureau data, the rate of homeownership among young adults aged 25–34 was 45.4% for Generation X, but dropped to 37% for Millennials. This decline comes despite nearly three in five Millennials viewing homeownership as a core part of the American dream.

Ultimately, the differential in housing will upset America’s long-term political balance. Housing costs are driving young people, immigrants and minorities to Sun-Belt and even Rust-Belt locales, while the Northeastern and West Coast metros continue to lose domestic migrants. Few young people can expect to afford living in California, where the rich now dominate the housing market, and more than a third of all real-estate transactions in recent years topped $1 million.

Read the rest of this piece at: UnHerd.

Joel Kotkin is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. He is the Roger Hobbs Presidential Fellow in Urban Futures at Chapman University and and directs the Center for Demographics and Policy there. He is Senior Research Fellow at the Civitas Institute at the University of Texas in Austin. Learn more at joelkotkin.com and follow him on Twitter @joelkotkin.

Feudal Future Podcast — Breaking Down Barriers in Housing Development

Joel Kotkin and Marshall Toplansky — Tue, 04 Feb 2025 19:17:26 -0500

Discover why building a home in California now costs over $1.2 million per unit as we navigate the maze of the state's housing crisis with Gary London and Jennifer Hernandez. These experts shed light on the staggering decline in permits for single and multifamily homes.

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More podcast episodes & show notes at JoelKotkin.com

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The Center for Demographics and Policy focuses on research and analysis of global, national, and regional demographic trends and explores policies that might produce favorable demographic results over time. It involves Chapman students in demographic research under the supervision of the Center’s senior staff.

Students work with the Center’s director and engage in research that will serve them well as they look to develop their careers in business, the social sciences, and the arts. Students also have access to our advisory board, which includes distinguished Chapman faculty and major demographic scholars from across the country and the world.

For additional information, please contact Mahnaz Asghari, sponsored project analyst for the Office of Research, at (714) 744-7635 or asghari@chapman.edu.

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Learn more about Joel’s book ‘The Coming of Neo-Feudalism‘

This show is presented by the Chapman Center for Demographics and Policy, which focuses on research and analysis of global, national and regional demographic trends and explores policies that might produce favorable demographic results over time.

Feudal Future: Addressing the Housing Affordability Crisis & Protecting the Middle Class Dream

Joel Kotkin and Marshall Toplansky — Mon, 01 Apr 2024 11:36:15 -0400

Unlock the mystery behind why securing a roof over your head has become an arduous quest in today’s Western civilization. This episode promises to gift you with the perspectives of housing experts Joel Farkas, Wendell Cox, and Karla López del Río, as we navigate through the complexities of local and state regulations, fees, and the polarizing anti-sprawl policies that contribute to the housing unaffordability crisis. It’s a discussion that extends beyond numbers and policies, touching the lives of middle-class families and reshaping the demographic landscape of entire states.

Listen on Apple Podcast
More podcast episodes & show notes at JoelKotkin.com

Watch this Episode

Support Our Work

The Center for Demographics and Policy focuses on research and analysis of global, national, and regional demographic trends and explores policies that might produce favorable demographic results over time. It involves Chapman students in demographic research under the supervision of the Center’s senior staff.

For additional information, please contact Mahnaz Asghari, sponsored project analyst for the Office of Research, at (714) 744-7635 or asghari@chapman.edu.

Tweet thoughts: @joelkotkin, @mtoplansky, #FeudalFuture #BeyondFeudalism

Learn more about Joel’s book ‘The Coming of Neo-Feudalism‘

Bay Area Council: Can We Restore the California Dream?

New Geography — Fri, 25 Feb 2022 15:11:05 -0500

Joel Kotkin, Presidential Fellow in Urban Futures at Chapman University and Marshall Toplansky, Clinical Assistant Professor of Management Science at Chapman University, plus Holland & Knight Partner Jennifer Hernandez and Raley’s President and CEO Keith Knopf join a Bay Area Council webinar to discuss how we can restore the California dream. The webinar was moderated by Jim Wunderman, President and CEO, Bay Area Council.

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125+ Years Savings for House Down Payment in L.A., S.F. and San Jose

Wendell Cox — Mon, 01 Nov 2021 11:44:49 -0400

A just published report by Knock.com (see note) estimates that, at current prices, the median income household could require between 115 and 167 years to save for a down payment on the median priced new home in some major metropolitan areas.

A just published report by Knock.com (see note) estimates that, at current prices, the median income household would require 12 years to save for a down payment on the median priced new house. This shortest down payment saving period is in the Houston, San Antonio, Oklahoma City and Atlanta metropolitan areas.

Among the markets in which new construction house transactions were eight percent or more of sales, Metro Miami and metro Sacramento had the longest down payment saving periods, at 30 and 21 years respectively. In both of these markets, only 20% of households could qualify for a mortgage on the median priced new house, according to Knock.com.

However, among the markets where new housing construction was less than the eight percent level, housing was far more expensive. Knock.com estimates that the median income household would need to save 115 years in metro New York to save for a down payment on the median priced new house. Three coastal California metros would require more than 125 years of savings for a down payment.

127 years in metro San Jose (includes Santa Clara and San Benito counties).
153 years in metro Los Angeles (includes both Los Angeles and Orange counties)
167 years in metro San Francisco (includes San Francisco, San Mateo, Alameda, Contra Costa and Marin counties.

The irony is that San Francisco and San Jose metropolitan area residents have been reported to be migrating to the Sacramento area for more affordable housing.

Each of the four metros with the longest down payment saving time were rated severely unaffordable in Demographia International Housing Affordability: 2021, published by the Urban Reform Institute (US) and the Frontier Centre for Public Policy (Canada). Among the markets in which new housing represented eight percent or more of housing transactions, Sacramento, Miami, Denver and Las Vegas were also severely unaffordable.

Note: Knock.com is a real estate firm established in 2015 by founding team members of Trulia.com Survey press release.

Wendell Cox is principal of Demographia, an international public policy firm located in the St. Louis metropolitan area. He is a founding senior fellow at the Urban Reform Institute, Houston, a Senior Fellow with the Frontier Centre for Public Policy in Winnipeg and a member of the Advisory Board of the Center for Demographics and Policy at Chapman University in Orange, California. He has served as a visiting professor at the Conservatoire National des Arts et Metiers in Paris. His principal interests are economics, poverty alleviation, demographics, urban policy and transport. He is co-author of the annual Demographia International Housing Affordability Survey and author of Demographia World Urban Areas.

Mayor Tom Bradley appointed him to three terms on the Los Angeles County Transportation Commission (1977-1985) and Speaker of the House Newt Gingrich appointed him to the Amtrak Reform Council, to complete the unexpired term of New Jersey Governor Christine Todd Whitman (1999-2002). He is author of War on the Dream: How Anti-Sprawl Policy Threatens the Quality of Life and Toward More Prosperous Cities: A Framing Essay on Urban Areas, Transport, Planning and the Dimensions of Sustainability.

Frontier Thinkers Corner: Housing Affordability

New Geography — Fri, 29 Oct 2021 15:31:16 -0400

Wendell Cox joins host David Lees for a discussion on housing affordability and the root causes of the unaffordable housing crisis.

This in-depth overview of the affordability crisis with world renowned housing affordability expert Wendell Cox. This webinar will reveal key insights based on his many years of landmark research including the internationally cited Demographia Housing Affordability Index (Frontier Centre is the Canadian distribution partner). His international and domestic case studies give participants a whole new appreciation for why we are in this current housing crisis and why now is the time for a rethink of housing policy to make it more affordable.

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