The Fallacy of Public Housing

A couple of years ago I put out a podcast on the poor performance and negatives of public housing in the Twin Cities. Such squalor is not limited to just one area. It happens in most areas where there is widespread public housing.

A local housing authority in New York manages apartment buildings. Initiated by Mayor Fiorello LaGuardia (of airport fame) in the 1930’s, it is the nation’s largest public housing system. Created during the Great Depression, it was assumed that the residents would be two-income, working families whose rents would cover the upkeep. Yes, expectations of two incomes existed during the worst economic times in US history.

Today, though, just two percent (2%) of New York public housing units include two adults with children, and a mere one-third of households report wages from actual working income. Not working is almost glorified. These buildings are falling apart and have an estimated $78 billion backlog for repairs. Repairs include non-functioning smoke detectors, outdated electrical components, damaged interiors, missing child safety components, deteriorated roofs and pumps, and leaking pipes.

According to the US Housing Department, 30% of the city’s public housing residents are “overhoused”, meaning that single adults are living in three, or even four, bedroom apartments. Those over 65 occupy public housing at twice the rate of private housing. This takes apartments away from those with children who actually need multiple bedrooms. Ten percent of the residents have been in their apartment for more than 40 years. Artificially cheap rents mean residents fail to relocate when their kids grow up. This is not a temporary living situation to help those in need. It’s a way of life for which such housing was never intended.

In contrast, those who live in private housing with higher property tax, and space they no longer require, often end up selling in order to downsize and save money. Such downsizing allows for new residents, who actually need the extra space, to occupy them. Turnover in private housing is also twice that of public housing, according to census data. Part of that is due to New York lawmakers making it extremely difficult to evict for non-payment of rents. Most of it is just due to stupid regulations that completely ignore encouraging self-reliance for those on assistance.

Without rents, or underpaid rents, units fall further into disrepair. An estimated 200,000 public housing units are in major need of repair, but don’t generate enough income to make such repairs. One-third of units have issues with rodents – twice the rate of private units. They have twice as many leaks, toilet issues, and elevator breakdowns, as well as three times as many heater breakdowns and mold issues.

New York is already the most regulated housing market with the most government-owned and/or government subsidized housing in the US. However, instead of blaming taxpayer-funded government handouts and lack of quality oversight, socialist Mayor Mamdani, blames the market and believes yet more government control is the answer. It’s like trying to protect a flock of sheep by putting additional wolves inside the fenced pasture.

Source used: Reason Magazine