Building More Housing Creates “Moving Chains” of Affordability

“It brought so much joy to my life knowing that Michael had a chance to be a kid again.” That’s Titi, a Washington, D.C., resident whose son, Michael, was placed in foster care while she was living in a shelter. Over a year later, she was able to reunite with him when she found a stable place to live.

Titi’s story illustrates the real-life consequences of the U.S. housing shortage—currently estimated at 4 million to 7 million homes—and how building more housing of any kind can help increase availability and improve affordability.

How so?

It’s called a moving chain.

Research conducted by Evan Mast, an assistant professor at the University of Notre Dame, shows that when a community builds new housing—including high-end apartments—it creates vacancies downstream, in lower- and middle-income neighborhoods, as people move to bigger or nicer (and often more expensive) homes.

Using this framework, The Pew Charitable Trusts found that Titi’s home in a dedicated low-income apartment building would not have been available if a luxury apartment building had not been built in downtown D.C. 10 years earlier. By allowing more apartments to be built—even luxury apartments—D.C. created a moving chain that freed up at least five homes—including Titi’s.

“It is so heartwarming to know that through the efforts of producing more housing, this woman has now found a home and her family has been reunited,” says Nina Albert, D.C.’s deputy mayor for planning and economic development.