We must recognize that, even though our community is attractive enough to raise the market value of all housing, we must be certain to provide affordable housing so those on the lower-wage end of the economy can live her to work here. Otherwise, we risk pricing ourselves out of the market for the community we wish to create.
Here's an interesting reference from the Dept. of Housing and Urban Development (through the Scout Report):
"Why Not in Our Community?": Removing Barriers to Affordable Housing http://www.huduser.org/intercept.asp?loc=/Publications/pdf/wnioc.pdf
The past decade or so has been a true "comeback" era for American cities. Once proclaimed to be rather dead and lifeless, many urban centers have been reinvigorated through massive capital investments in a number of mega- projects, including huge residential and retail developments. Unfortunately, a number of people are now unable to afford to live in the cities in which they work. This latest report from the Department of Housing and Urban Development looks at the regulatory barriers that impact the availability of affordable housing around the United States. Released in February 2005, the 31-page report finds that "outdated, exclusionary and unnecessary regulations continue to block the construction or rehabilitation of affordable housing in some parts of America". Some of these specific trends in today's housing markets include complex environmental regulations, "smart growth" principles, and various impact fees that may be assessed on such developments. The report will definitely be of interest to those with an interest in housing policy in the United States and in urban policies and trends more generally.