Housing costs are rising faster than incomes, putting greater financial stress on U.S. families. In 2017, nearly half of renter households spent more than 30 percent of their income on rent, meeting the Department of Housing and Urban Development’s (HUD) definition of being “cost-burdened.” While affordability has long been a problem for poor renters, even middle-income households are facing greater challenges, particularly in urban areas with strong job markets. And where people can afford to live has important implications.

Research shows that children who grow up in high-opportunity communities have better economic outcomes as adults. Cities and neighborhoods with strong labor markets and good schools exactly the places in highest demand are not building enough new housing, contributing to worsening affordability. Because housing near jobs and transit centers is so expensive, low- and moderate-income people are pushed to cheaper housing on the outskirts of metropolitan areas, requiring them to spend more time and money commuting

Redeveloping older, low-density buildings with new, high-density buildings is quite common in expensive cities—except in the wealthiest neighborhoods where affluent homeowners use their financial and political resources to block most new housing. City-wide zoning reforms that open up those neighborhoods to townhomes, duplexes, and small apartment buildings would substantially increase the supply of housing, while also making those communities financially accessible to many more families.