Vermont is Homeless
Thursday, April 30th, 2009Oh, the poor, pitiful people of Vermont.
They wander the streets, bearing on their aching backs their worldly possessions, perhaps in a knapsack, perhaps in a bindle. As darkness nears, they seek shelter. Under bridges and overpasses, in a nearby barn, perhaps on the porch of a general store or the doorway of a church. They are , by the tens if not the hundreds of thousands, homeless.
They must be. The headline of the lead story in yesterday’s Burlington Free-Press proclaimed that “Most in Vt. still cannot buy a home.” That’s what the story said: “Most Vermonters can’t afford to buy a home.”
A calamity, especially because just 15 days earlier came word that Vermonters were having an awfully hard time renting a home, too.
“For Vermont’s renters, the news isn’t good,” noted a report from the Vermont Affordable Housing Coalition. The study it released that day concluded that to afford a decent two-bedroom apartment, one full-time earner would have to work 87 hours a week. Clearly, nobody can work 87 hours a week.
Most Vermonters, it seems, are unable to buy a home and can not afford to rent one. Ergo, they must homeless.
Ergo fly a kite.
Clearly, neither an editor at the Free Press nor any of the authors of ”Between a Rock and a Hard Place,” the study on which the story was based, knew this little fact: At least 71 percent of the people of Vermont — more than in most other states — live in owner-occupied houses. Almost every one of the other 29 percent somehow rent houses or apartments even though the Vermont Affordable Housing Coalition would have you believe that they can not afford to pay the rent.
Either this state has a lot of very forgiving landlords or there’s something fishy about that report.
Probably there’s something fishy about both those reports, and about the near-universal acceptance of them as objective, reliable, sources of information. It isn’t that they are put out by people who don’t mean well and don’t do some good. The Affordable Housing Coalition doesn’t just put out reports. It helps low income people find places to rent and works with both public officials and the private sector to encourage the construction of moderately-priced dwellings.
And it isn’t that these two reports are wrong exactly. Lots of people in this state have trouble finding decent housing at an affordable price. There’s no point going through all the figures in this exercise. If you want the details, read the originals about rentals here and home-ownership here.
But remember, these studies are by advocates, not objective observers. They are honorable advocates trying to find solutions to genuine problems. But like all advocates, they tend to get parochial. Their cause is housing. So they see the problem – that a lot of people can’t afford to buy or rent adequate housing – as a housing problem.
Isn’t it? Well, yes. Or then again, no. It’s a relationship problem – the relationship of income to housing costs. True, housing costs have gone up over the years. But just as important is that income – especially income for the not-so-wealthy – has not.
As it happens, the issuance of both reports coincides roughly with the granting of the John Bates Clark award (for the best American economist under the age of 40) to Emmanuel Saez. Among Saez’s recent discoveries is that, as White House Office of Management and Budget chief Peter Orzag put it, “the very highest earners…(captured) almost three-quarters of total income growth in the economic expansion of 2002 to 2006, while the remaining 99 percent of the U.S. population split among themselves the final 25 percent of the increase.”
And the farther down you go among that 99 percent, the smaller the share of the pie. No wonder lower income people find it hard to rent a decent home.
But because these two studies have been undertaken by organizations devoted to housing, they assume that the problem is essentially a housing problem with a housing solution. But maybe it’s at least as much a wage problem with a wage solution. Does Vermont need more dwelling units or stronger labor unions?
Almost without exception, advocacy group studies accent the negative. It’s only natural. If the situation weren’t so dire, why…why, you might not even need the advocacy groups.
OK, that’s a little unfair. Housing affordability is a real problem for some people, and good for the advocates for their reminders. But both of them tilt the evidence to make the situation look worse than it really might be. Read the rental report carefully, for instance, and you discover that the typical two-earner family actually can afford a decent two-bedroom apartment. As it turns out, a typical two-earner family can even afford to buy a house.
Yes, there are a lot of one-earner households, especially among renters. But some of them are one and two-person households who don’t need a two-bedroom apartment.
“Between a Rock and a Hard Place” by the Housing Council and the Vermont Housing Awareness Campaign concludes by saying, “The perennial answer to Vermont’s housing shortage is more housing, particularly more housing affordable to Vermonters of low and moderate incomes.” But it never really established that there is a housing shortage as opposed to a disconnect between incomes and rentals.
Both studies also suggest (though, in fairness, they never actually state) that these housing problems are peculiar to Vermont, and therefore somehow can be eased if only Vermont changed one policy or other. But nothing in the “Rock and Hard Place” study supports any such conclusion.
The rental study, “Out of Reach,” does point out that Vermont is “the 15th most expensive state in the nation for renters,” which seems to mean that the gap between the median wage and the median rental is 15th largest in the country. No surprise. Vermont is in the expensive Northeast.
The “Rock and Hard Place” study also assumes (though, again, it never overtly states) the superiority of home-ownership over renting. A questionable assumption. For many people, especially those who have modest incomes and not much of a nest-egg in the bank for a down payment, renting might make sense. Spending money and creating programs to help lower-income earners buy their own homes could be a waste of time and money, and perhaps a disservice to the supposed beneficiaries. The current economic mess stems in part from too many people buying houses they couldn’t really afford. Policy-makers might want to reconsider the wisdom of encouraging such purchases.
Yup, there’s a housing problem in Vermont. Maybe an exaggeration problem, too.






