Supply Skepticism or Supply Realism?

Abstract

While Been et al. makes a strong case that new market‑rate supply can affect rents and prices, what is missing from the piece is sufficient context on who benefits, to what extent and whether market reforms and high‑end rental housing can adequately move the housing affordability needle for low‑income renters. At best, current research suggests new market‑rate rental supply slightly lowers the rate of rent increases for all, at worst it may also increase rents in the short‑run in lower quality housing occupied by lower‑income renters. While the authors critique “supply skepticism,” I call for a middle path of supply realism. Supply realism acknowledges the racist history of exclusionary housing policies, embraces zoning reforms while also being clear eyed about the limitations of zoning and other market reforms alone to achieve universal housing affordability.