Tenant-Rights Activists, Meet the Housing Shortage

Source: Joint Center for Housing Studies

The debate over tenant evictions is gaining traction now that the Virginia Housing Commission has taken up the issue. Two concrete proposals were put before the Commission during a Tuesday hearing. One would extend the time from five days to two weeks before rent is declared to be late. A second would give tenants more time to pay late rent before they are evicted.

Advocates for tenants rights and landlords differed over the wisdom of these proposals, and discussion bogged down when it became evident that there was insufficient data to determine what impact the proposals would have, reports the Daily Press.

Apparently, a critical question was never asked — why are rents rising and making housing so unaffordable for the poor and near poor?

Hopefully, members of the Virginia Housing Commission will pay heed to a new report issued by the Joint Center for Housing Studies at Harvard University, which illuminates how supply and demand are driving up housing prices and making rent increasingly unaffordable for lower-income Americans across the country. While the housing crisis is most acute on the West Coast and in the Northeast, the problem is getting worse almost everywhere, including Virginia.

As can be seen (if you squint) in the map above, the ratio of housing prices to incomes in the Hampton Roads, Richmond, Lynchburg, Roanoke, Blacksburg and Bristol metropolitan areas is between 3.0 and 3.9 — less oppressive than in many other metros. But in the Washington (Northern Virginia), Winchester, Charlottesville, and Staunton MSAs, the ratio is between 4.0 and 4.9 — on the high side.

Digging deeper, the Harvard study shows that the percentage of renting households experience a significant “cost burden.” Virginia metros aren’t the worst in the country by this measure, but they’re far from the best, as can be eyeballed below.


The root cause of unaffordability is that home building is not keeping up with population growth. Given widespread zoning barriers to new construction, developers focus their efforts on projects with the highest profit margins — housing that can be sold for higher prices to higher-income households. But the problem runs even deeper. Most localities have zoned entire categories of affordable housing out of existence. Single Room Occupancy buildings are outlawed almost everywhere. Boarding houses are illegal. Granny flats and garage apartments are discouraged in many localities. It is exceedingly difficult to get permission to build new trailer parks. Middle-class voters don’t want poor people living near them, and they wield the power of the state to protect their property values.

Tenant-rights activists are targeting the wrong problem. If they make it more difficult for landlords to collect their rent, landlords will convert their rental properties to more profitable uses — thus aggravating the housing shortage for the poor. Activists moved by the plight of the poor need to stop attacking symptoms and address the root problem: zoning restrictions that cause the housing shortage. Otherwise, they’re really helping no one.