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john_b | 2 years ago

Public housing has income restrictions associated with it. This article talks about how even people with stable, well-paying jobs struggle to find housing. Public housing isn't the solution for these people.

What we should copy from Vienna is mixed use development. A huge portion of American suburbs are zoned as single family only and you end up with a housing shortage, horrible traffic, and pollution. Mixed use development allows density to increase while reducing traffic and encouraging people to be more fit (by walking or biking more). It's such a no-brainer from a whole-system perspective.

The problem is that NIMBYs and existing regulations exist to preserve the status quo and protect the equity long-term homeowners have accumulated. In places like CA there are additional disincentives to reform like Proposition 13 that favor long term owners at the expense of new homebuyers. Obviously a tax-advantaged asset is going to have a higher price than an equivalent non-tax-advantaged asset. And significant property tax revenue that could otherwise fund public transit and additional construction isn't collected as a result.

Eventually enough boomers will die and the demographic forces will shift and create the opportunity for reform, but this will be too little too late for a whole generation. I'd love for a concerted national effort to tackle this problem and reduce barriers to building the kind of housing America needs, but it's hard to see that happening anytime soon.

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theluketaylor|2 years ago

Public housing doesn't fundamentally require income restrictions. Most locations place limits on eligibility for public housing, but that's simply because there isn't that much public housing so it's prioritized for those most in need.

Part of Vienna's success is building so much public housing there is plenty to go around, so all sorts of people live in public housing. There isn't a stigma associated with public housing since using it doesn't imply any specific trait.

I'm a big fan of building all sorts of non-market housing all over cities to avoid the slum problem. Charge means-tested rent, so someone will low income pays very little rent. Someone with a good job pays closer to market rent (and that extra revenue helps pay for the overall housing program).

One of the huge successes of Vienna's public housing model is mixing people of different socioeconomic backgrounds. People connect with people with all sorts of different backgrounds and experiences resulting in much strong social cohesion.

john_b|2 years ago

I've been to Vienna and I have a lot of positive things to say about the city, but trying to adapt their model 1:1 to the US is not realistic for many reasons.

You're right that public housing doesn't fundamentally require income restrictions. The government could forbid all private construction and take over home development itself, placing price caps as needed. But if you think something like that's going to work in the US when we can't even accomplish much more minor housing reform, you're dreaming. Vienna's model is certainly not that radical.

For starters, even Vienna's social housing model has income restrictions. If you and your partner both earn the average 2023 Viennese salary (about €52,000/person) then you don't quality for social housing because your combined income significantly exceeds the annual threshold (€79,490 for two people in 2023).

Even if you do qualify, you are only eligible if you have lived in Vienna for two years already. This system does nothing for new transplants. And once you do qualify, the wait time to be approved for an apartment can be in excess of 5 years. They even have a "bonus period" to move people who have been waiting for more than 5 years up in the line, because the city recognizes how frustrating that must be.

The system is easily gamed too. Vienna only checks your income once as part of the process. If your income increases later on (e.g. because you finished school and got a great job) you don't become ineligible. That part is fine by itself, but you can also transfer the apartment to a qualifying family member if you decide to move out, and they don't need to wait 5 years. This contributes to the reduced supply and long wait times because it reduces inventory and rewards those with family connections in the city.

And of course this whole system is far from free. If you make the average Viennese salary your income tax rate is 42%, whereas it's 25% for the average American worker. The average Vienna home is worth around 1 million euros and the property tax rate on such a home is a whopping 3.5%. Even in expensive coastal places like San Francisco and San Diego, property tax rates are barely above 1%. The tax burden to fund this kind of social housing (and other great things too, to be fair) is definitely heavy. It's fine to point out the positives of such a system, but the costs have to be acknowledged as well. And in the US I don't think the taxpaying population of any city is willing to bear those kinds of costs.

Vienna's system does do a great job mixing different people together, as you note. But not all of this is due to public housing. Quite a bit of it is simply how walkable the city is and how great their public transport options are. Even a moderate amount of public housing for low income individuals scattered throughout a very foot-friendly city would do a great job mixing people together.

lotsoweiners|2 years ago

> Eventually enough boomers will die and the demographic forces will shift and create the opportunity for reform

Or generation X becomes the new “boomers”.