DREAM HOUSES

September 2002
		Many residents of Burlington, Vermont who earn the median salary cannot afford to buy or rent a median-priced house or apartment -- and the disparity continues to grow with the housing market boom. What does this mean on a national level? Housing experts Wendell Cox and Susan Popkin answer your questions.

Forum introduction Why can't Section 8 funds contribute to down payments? Is there any racism involved? What has been the progress of any trends to revitalize older housing in and near cities? Would it be easier to build affordable housing in more outlying areas, such as beyond the suburbs? Pertinent statistics about substandard housing assessments done in Houston. Why is there such a disconnect between wages in a particular area and housing prices?     Online Special: How We Live

Nick Bennett of Hamden, CT asks: Often we hear of the high costs of new housing, but what has been the progress of any trends to revitalize older housing in and near cities? Here in the Northeast, there is a large cache of older housing stock near large and small towns, but much of it remains in slow decline. What measures can/will be taken to help low and middle income earners utilize this underappreciated resource? Dr. Susan Popkin responds: In many cities, community development organizations have been acquiring and rehabilitating older housing. The issue is maintaining a balance between revitalization and gentrification, which may push low-income families out of the community. Wendell Cox responds: Too often, lower income households are driven out of inner city neighborhoods as government-subsidized urban renewal and gentrification projects raise the cost of housing beyond their means. The result is exactly the opposite of what you seek, and governments have no business engaging in such activity. At the same time, some local governments have implemented tax abatement programs to encourage existing residents to improve their properties, which can improve older neighborhoods. Finally, some of our central cities are experiencing market- based residential development booms. Chicago may be the best example of this, where most available disused loft buildings around the "Loop" (downtown) have already been refurbished.