The word "affordable" housing is used very loosely these days. Who defines it? For many people, there isn't an "affordable" level unless it is subsidized or free. That's a whole 'nother kettle of worms. With costs today, it is impossible to build affordable housing for those who need it.

I did development for years. The price for land, what you can do with it, location, interest rates, weather, financing, city departments & market conditions PLUS more enter in. Certain dynamics can be controlled while others YOU, the risk-taker, are subject to. The costs upfront involve out of pocket cash & borrowing (if you can get it) then the race to recapture begins. Everyone wants their money (& gets it) before you see profit. Lot of exposure & not for the beginner developer to be sure. Today, no one is giving anything away. When getting a subdivision approval, it is over when it is over which no one knows when. Even if you flip instead of build on your approved results, the people you sell to have conditions that allow them to RETRADE the deal right up to a calculated COE. Why? They want to mitigate their risks. Used to be the big builders land-banked approved projects until the market lined up & the public building companies would build at a loss because shareholders require that they keep doing projects. When politicians or layman speak of, we need more housing, they don't know what they are talking about. I can lecture on this for months & field questions to no end

Affordable to whom? 

The people talking about "affordability" are not dealing with affordability issues. Many of them are the drivers of high prices, inflation, etc.  Nuff said. 

I think you nailed it Peter Mohylsky, Beach Broker . As an example: prior to our oil boom and a simultaneous flood that destroyed 1/3 of the homes in Minot, prices were very pretty stable. During that situation prices doubled over night. After the initial boom and after the devastated portion of our town was rebuilt prices never went down and have continued to climb. An example of my own home which I purchased 20 years ago for $40,000 is now appraised for $180,000.

Michael Elliott' thoughts captured mine as well. I prefer not to have my taxes go to any more federal social programs. Supporting new housing is not in the US Constitution. Inflation is the major issue facing new construction and home purchases.

While affordable housing is incredibly subjective, the term is thrown around like we should all agree on a set price. The vicious cycle that we are in with our economy is quite concerning and now, the government is talking about subsidies.  Like you, Peter, I see no relief in sight. A spade is a spade - the cost of development is nowhere near 'affordable' in my area. There's no turning that spade into a heart in this economy.

Economic driver: Supply and Demand

Real Estate driver: Location, Location, Location

Fuel prices control much of it.  Fuel goes down, prices will follow.

More a factor in changing tastes of the buyers who all want a new home while ignoring the older homes that are often less expensive and constructed with better materials and workmanship.

Carol Williams hit the nail on the head with her answer.  What is "affordable"?  Today a $60m mansion is not affordable, but when I open up my own federal reserve bank and print my own endless supply of money it will be easily affordable.

Don't forget the cost of the land underneath each housing unit.  Here in Silicon Valley, that is a huge cost.

Land costs are high here and local regulatory agencies seem to delight in causing development costs to rise. NO, I do not think prices will go down and even if values recede your Real Estate taxes will not.

Affordable housing = subsidy.

Where is the money coming from?

I think you know the answer to that question.

I am a fan of "tell me more" so I can seek first to understand and then to be understood. Sometimes you just have to move on and sometimes take the time to be understood.

Great questions! My builders' clients have told me the cost of supplies has skyrocketed. Also, finding steady workers is a joke. They stay on the job for a while and then leave.  

Let's be real here, $25,000 is a drop in the bucket. Some buyers are now eligible for grants of $12,000 or more, but even that is not enough to make the American Dream a reality in this economy.

Someone is telling people what they want to hear 

Just my humble opinion 

     How each unique housing market operates means different steps to take for home buyers to make it work. In small rural markets you can buy a $69,500 home or less, do some tweaks, sell it, make a profit.

     Have listed and sold lots of land acreage with water well, modern septic, driveway and power, lawn all in and ready to go for under $20,000. Old mobile metal might need to be scrapped. Or tear down house to recycle  lumber and there's your future garage.

     It helps if you the home buyer and seller has skills to not hire everything out. Or you have family members and in-laws that are plumbers, electricians, carpenters, etc. that take turns with the "barn raising".

     This weekend we tackle your place, next week you are over with the gang helping me do my housing project. 2/3rds of a house is labor and when you are brought up fixing, repairing, building, you have skills for solutions.

     You manage your money well and have savings, so you have choices to buy materials on sale and supply your own labor. These are the best of times if you have grit, patience and really want to own your own house. 

     If new construction subdivision process is easy and low cost, and if you the home buyer reduce your square footage, pick a proven stock design, easy does is on the kitchen and not so many bathrooms. Then building new, slow cooked with local banks helping out with custom made creative financing.

     Have lots of land owner financing on the building site and if you can get the house frame weather tight, it is pay as you go on the materials. You can do it this way in small town but not in a city with strangling regulations and slow expensive permitting process. 

     I am on a border and can buy lumber, trusses from Canada cheaper and have it delivered to the building site. Dollar worth more than the loonie so that economy helps. There is always a method to keep the market going. Don't look for Uncle Sam to fix everything Peter Mohylsky, Beach Broker.

Countless definitions where consensus should be the foundation of moving forward.  The reality of the realty-related world and beyond tells me I should remain silent on the subject.  Of course, it's an important one.  Many things are but tongues continue to wag.  

👅😋😜😝😝😛👅 And their lips move too. . .   

We have affordable areas but they're further out. Some people want to live where they work. If teachers and other community servants can't afford to live in their community, that is a problem that needs to be addressed. When it comes to restaurants, etc., I imagine those businesses have to pay more to get good employees to drive to those areas and in turn charge more. I know I can get things (gas, etc) cheaper in towns 30 minutes from where I live. 

Interesting enough, some people (some employees such as first responders, etc) will work in the towns that pay more and still live 30-45 minutes out to save money. Teachers here are paid by the county and I doubt they're paid more if they work in an affluent area. 

House Values have nothing to do with building cost.  The price is based upon what a willing buyer and seller agree upon and whether the buyer can get financing.

At the rate that homes are being destroyed by disasters, we'll never catch up with building enough housing.

"Low cost" housing is always in demand, but the bar is different depending on geography and demographics.