Planning, Housing Supply and Affordable Development in the USA

Abstract

This chapter examines changing tensions between housing and urban policy in the USA, where restrictive local planning systems emerged as a mechanism for suburban “exclusion” over the early- and mid-twentieth century, exacerbating socio-spatial divides. Proceeding from this overview, the chapter explains contemporary different housing roles of the Federal government, states and local authorities in the US and the key forms of housing assistance through rental vouchers, public housing and tax credits to incentivize low-cost rental housing development and provision. It then outlines a range of planning system approaches for affordable housing, proceeding from “anti-snob” policies in states such as Massachusetts, where the original laws to overcome local resistance to affordable housing development in suburban neighbourhoods were passed in 1969 (known as section 40B). Other approaches explained include voluntary and mandatory inclusionary zoning schemes, which require a proportion of housing be set aside for affordable rental or home purchase; density bonuses for affordable housing provision, protective mechanisms and impact fees to preserve affordable housing or offset its loss. These provisions have evolved over time and are now used in conjunction with new policies to encourage “smart growth” and renewal through densification around public transit. The concluding section of the chapter considers recent directions in US housing policy since the sub-prime mortgage market collapse and the GFC, including questions about the sustainability of home ownership for low-income households and the potential for a new housing crisis as ageing baby boomers abandon car-dependent suburbia for high-amenity inner city and lifestyle regions.