Poll: Housing industry is part of affordability problem

"What's the biggest cause of high housing costs in the nation? Industry insiders answer that government bureaucracy slows or prevents the construction of new housing, compounded by the public's not-in-my-backyard aversion to adding homes in their neighborhoods. Well, one poll shows the typical American thinks the industry needs to look at itself, too. The Searchlight Institute's recent poll of 2,123 U.S. adults on housing provides another perspective on the grand affordability debate."

"There's no argument about the scope of the financial burden, as 93% of those polled said housing was overly expensive with 43% saying way too high. But one question summed up the doubts about the industry's contention that housing construction is the best cure for affordability. The poll asked: Do you believe that increasing the number of homes in your community will lower prices or raise prices? The results showed 44% of those polled saw development as raising prices vs. 24% seeing price declines."

"Consider who Americans blamed when the poll sought rankings of affordability roadblocks. Look at what drew the most votes as examples of housing policy's disconnect. #1 Investors The poll found 48% of Americans surveyed cited investors are buying up housing to turn a profit as a big cause of high housing costs. Numerous industry insiders argue that investors are good for the market. Their cash provides liquidity, particularly as buyers when others won't take the risk."

A national poll of 2,123 adults shows widespread belief that housing is too expensive, with 93% saying costs are high and 43% calling them way too high. Many respondents doubt that simply increasing housing supply will lower prices; 44% said more homes would raise prices while 24% said they would fall. Visible construction often targets higher-end units, contributing to perceptions of increased local costs. The market currently holds large inventories of unsold new houses and empty apartments priced at perceived inflated levels. The poll ranked investors highest among affordability roadblocks, cited by 48% of respondents, while some industry voices defend investor liquidity.

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