What is Social Housing?

For over a decade, we’ve given private developers money, land, and tax incentives to build housing in Portland, only to come up 10,000 units short of what we need today. Workers, families, young people just starting out, students, and retirees all suffer under a housing market that caters to real estate speculators, corporate landlords, and wealthy second and third home investors.

Home ownership was once how millions of Americans were able to enter the middle class and build financial security for our families, but no more. In Portland, owning a home is increasingly the exclusive privilege of the already wealthy. Cost burdened renters are unable to save for a down payment on a first home, and even if they could get ahead, what used to be “fixer-uppers” are now sold as tear-downs to make way for high-end single family homes. It would be foolish to continue to invest in this failed system and expect different results.

As Portland looks to implement new State and local zoning regulations to undo a century of exclusionary zoning, and increase density, we must also recognize that more housing supply overall will not automatically lower home prices, or make it easier to find an affordable apartment. In fact, up-zoning areas where affordable housing development has been resisted can have the opposite effect, increasing speculation and displacing people of color. Portland’s historic districts may have actually helped stabilize housing for low income BIPOC communities by preventing exactly this kind of rapid development.  

So, how do we build a lot more housing in Portland without creating out of control gentrification, displacement, and racial inequality? The answer is non-market housing, or “Social Housing,” which is built for the express purpose of housing people, not extracting profit, and remains permanently affordable because it’s shielded from market incentives. Social housing also helps to stabilize the private market by providing affordable alternatives.

And it delivers a higher return on public tax dollars because it remains off the private market forever. As loans are paid down, rent payments are leveraged to build more housing. And the more of it we build, the more market stability it provides.

Social Housing also fosters greater democracy and social equity among residents because it’s community-owned and managed. The model has been used successfully around the world, most notably in Vienna, where 60% of people live in public housing, and competitions for funding ensure that housing is beautifully designed and conforms to rigorous environmental standards. Seattle, WA passed a social housing initiative in February, and Montgomery County, MD has been using the model successfully for decades.

Social Housing is a broad term that can include mixed income public housing, limited equity co-ops built on community land trusts, and non-profit owned and managed rentals, some of which we are already doing here in Portland. But we need more of it. A lot more. Social Housing is a way to address Portland’s housing crisis that will help us build the housing we need now, and prepare for future growth.

If elected, I’ll make it my top policy priority.