David Scott on Housing Affordability: Labor Shortages and Construction Costs

Housing Affordability Crisis

• 🎯 Housing affordability is the top concern for constituents in Atlanta, impacting employment, education, and economic stability.
• 📈 Respondents in an Atlanta regional survey identified investors buying and renting homes as a primary cause of the affordability issue.

Factors Driving Up Costs

• 🏗️ Rising construction costs are a major factor, stemming from labor shortages, material availability, and land costs.
• 📉 Atlanta's construction workforce has seen a 6% loss of workers aged 25-52 over the last seven years.
• ⚠️ There is an annual shortage of over 700,000 new construction workers.

Impact on Homebuyers

• 🏠 For first-time homebuyers, especially young families and communities of color, the lack of capital is a significant barrier.
• 💰 A shortage of workers necessitates higher wages to attract more labor, creating asymmetries in power and capital.

Potential Solutions

• ✊ Facilitating the economic right to collectively bargain can help workers negotiate better terms.
• ⚖️ Implementing a minimum wage can raise the floor for American workers, with studies showing ample room for wage increases without significant job loss.
• 🏘️ Zoning reform and federal-local coordination are important for expanding housing supply, though it's a complex issue for dynamic areas like Atlanta.