Housing affordability remains a main concern—not just for individuals looking to buy their first home, but for the broader economy, influencing everything from labor markets to community stability.
This concern took center stage at a high-profile event at the Federal Reserve Bank of New York on January 14 where economists, policymakers and housing advocates led discussions on improving housing affordability in America, making it more inclusive and equitable.
John C. Williams, president and CEO of the New York Fed, opened the event, stating that housing affordability is the top economic topic facing his district, with repercussions through all aspects of the economy.
“Housing affordability affects the ability of communities to attract businesses, and it affects the ability of employers to attract and retain workers—and grow their businesses,” he said. “With regard to housing, demand far exceeds the available supply, contributing to high costs and limiting the ability of our region’s economy to reach its potential. Meeting this demand is critical to achieving sustained economic prosperity.”
Housing: The foundation of stability
With the fires in the Los Angeles area continuing to consume homes, it has become increasingly clear how much of a foundation housing provides.
Speaking on housing affordability and access, Kyla Scanlon, financial analyst and author of a recent book—who is also credited with coining the term “vibecession” in 2022—flew in from L.A. to highlight the emotional and economic devastation caused by housing insecurity.
“It’s the type of devastation that you can’t really explain until you experience it,” said Scanlon. “Our anchor in a world that just can’t seem to stop getting rocked by waves.”
For everyday Americans, the ability to secure and maintain this foundation has become increasingly challenging and profoundly unaffordable—even in areas that have traditionally been more affordable, like some cities in Texas, added Scanlon. Further, home prices are still outpricing wage growth.
In 2023, median home sale prices were about five times the median household income, according to a recent report by the Harvard Joint Center for Housing Studies.
Housing is a “mirror that reflects fundamental shifts in our economy,” said Scanlon.
Zip codes and ALICE
Rising costs, stagnant wages and structural barriers continue to exacerbate the crisis, leaving many families struggling to secure stable housing.
Stephanie Hoopes, a regional housing expert and director of United For ALICE—a nonprofit helping communities suffering from federal poverty—was joined by Vicki Been, a faculty director of New York University’s Furman Center for Real Estate and Urban Policy to dive into the conversation of who the housing crisis is affecting.
Someone considered an ALICE—an acronym for Asset Limited, Income Constrained, Employed—could be anybody in a household that earns above the federal poverty level (FPL) but cannot afford the basic cost of living in their county. Despite struggling to make ends meet, ALICE households often do not qualify for public assistance.
In 2022, of the 129 million households in the U.S., 42%, or 54 million, were below the ALICE Threshold. This forces them to spend less money within certain categories in their survival budget: housing, childcare, food, transportation, healthcare, technology and taxes.
ALICE represents members of our essential workforce—cashiers, waiters, childcare providers, etc. “These workers are making our economy run smoothly and struggling to support their families,” said Hoopes.
Beyond the essential workforce, children are an important group within ALICE.
“Children are bearing the brunt and challenges,” said Hoopes.
About half of children live in households below the ALICE threshold. They are more likely to rent and move, which has huge developmental and educational consequences, she added.
Other than home being where you live, it also determines where you work, eat, go to school and do outdoor activities, among other things.
“Your zip code determines what happens with the rest of your life,” Been stated, emphasizing the intersectionality of housing, transit and employment.
Housing is not a silo; to start, it has huge consequences for transit and employers, said Hoopes. “It’s in everybody’s best interest to have a stable place to live; the economy runs more smoothly.”
National Association of REALTORS® (NAR) CEO Nykia Wright recently told RISMedia’s Founder and CEO John Featherston that both political parties had housing issues “at the top of their agenda” going into 2025, which she described as an encouraging sign against the backdrop of the ongoing housing crisis.
There have been a record amount of people leaving New York City, 6% of which moved due to the high cost of housing, said Been.
“This problem has been growing because of not enough housing—since the ‘80s,” she said. “Every year, we’ve dug the hole a bit deeper and it’s difficult to get out. It’s not a new problem.”
Overcrowding
Thomas Yu, executive director of nonprofit Asian Americans for Equality, discussed the urgent need to address overcrowding and the pressures faced by low-income renters.
Through firsthand experience, Yu has noted cases of extreme overcrowding in New York City, where multiple households share single apartments.
This overcrowding isn’t being tracked in the data, he added.
Speaking of low-income immigrants, Yu shared firsthand anecdotal experience, from building inspections, detailing how some of these people want to leave, but they simply can’t afford to leave their jobs.
“There is overcrowding—15 people in a one-bedroom apartment, sometimes unrelated households. Bunking and just renting a bed based on time-shares where they sleep during the day and then work their night shift, (vice versa).”
Yu closed off by advocating for zoning reforms and targeted investments to increase the affordable housing supply. “We can’t subsidize our way out of this,” he warned, calling for systemic changes to remove barriers to construction—another priority for NAR, as well as something the incoming Trump administration has promised to address.
Like Hoopes, Kirk Goodrich—president of Monadnock Development and host of “The Housing Problem” podcast—reemphasized how the essential workforce isn’t being protected.
Goodrich argued that the lack of urgency in addressing the housing crisis reflects a broader societal unwillingness to inconvenience oneself for the benefit of others. The housing crisis needs to be treated like an emergency—because it is, said Goodrich.
“The most important people in our city are the people who make our city run,” he said. “We have to amend our priorities.”
Jason Bram, director of economic research at the New York City Office of Comptroller, added that initiatives like New York City’s City of Yes—which seeks to eliminate zoning restrictions and increase housing stock by 80,000 homes over the next 15 years—are helpful, but not sufficient enough to address the demand.
Offering some solutions, Phyllis Ford, a deputy director of the Office of Housing Counseling at the U.S. Department of Housing and Urban Development, gave an overview of how housing counselors can help those struggling with the effects of the housing crisis.
They have educational tools for legal and financial assistance and to build relationships with each person, regardless of income. Learn more about their resources here.
For more details about the event, visit the Federal Reserve Bank of New York’s event page here.
