Breaking the Cycle: Local Governments Must Tackle Housing Undersupply While Strengthening Tenant Protections

Housing is the bedrock of a stable and thriving community, yet many cities and towns across the U.S.—particularly in the Midwest—are failing to meet the most basic housing needs of their residents. People cannot take jobs or pursue opportunities where they can't live. Chronic housing undersupply and skyrocketing eviction rates are intertwined crises that erode economic stability, exacerbate racial and social inequities, and perpetuate a cycle of poverty. For single-parent households and low-income families, these challenges are especially dire.

To break this cycle, local governments must act with urgency on two fronts: aggressively addressing housing undersupply and, in the interim, dramatically strengthening tenant protections, increasing rental assistance, and regulating landlord practices. By taking a two-pronged approach, we can both stabilize vulnerable renters today and ensure a future with sufficient, affordable housing for all.

The Link Between Housing Undersupply and Evictions The roots of high eviction rates can be traced directly to the chronic undersupply of affordable housing. When housing is scarce:

• Rents Rise Beyond Affordability: Low- and moderate-income renters are priced out of stable housing, leaving them vulnerable to eviction when costs escalate.
• Landlords Gain Harmful Market Leverage: With limited options, renters are forced to accept subpar conditions, short-term leases, and frequent rent increases.
• Families Are Squeezed Into Precarious Situations: For many households, particularly those headed by women or single parents, the cost of rent combined with childcare and basic living expenses often exceeds income.

This shortage creates a ripple effect, increasing homelessness, overburdening public services, and destabilizing entire communities.

Why Local Governments Must Prioritize Housing Supply Decades of inadequate housing production—fueled by restrictive zoning laws, inadequate modernization of building codes, and resultant slow permitting processes, have compounded the crisis. Reversing this trend requires bold, immediate action:

Expand Affordable Housing Production:

• Modernize Zoning and Building Codes: Allow higher-density and "missing middle" housing types, such as duplexes and townhomes, in traditionally single-family neighborhoods. Modernize building codes to dramatically expand house scale multifamily development
• Repurpose the Affordable Housing Ecosystem: Use municipal financing powers to create equitable locally controlled equity financing sources that result in public ownership and recycle capital.
• Leverage Public-Private Partnerships: Collaborate with developers and nonprofit organizations to fund and build affordable housing.

Incentivize Innovation and Scalability:

• Promote modular and factory-built housing as cost-effective solutions to rapidly increase supply. Reduce barriers that hinder housing developments, particularly for modular and factory-built homes, which can be produced more quickly and affordably.
• Offer tax incentives or grants to developers prioritizing affordable housing.

Focus on Equity:

• Require new housing developments receiving public support include affordable units and prioritize communities disproportionately impacted by housing undersupply and eviction.

Immediate Protections for Vulnerable Renters While ramping up housing production will take time, renters facing eviction today cannot wait. Local governments should implement policies to provide immediate relief and protections:

Legal Representation for Tenants:

Studies consistently show that providing legal counsel significantly reduces eviction judgments. Cities like Cleveland and New York, which offer right-to-counsel programs, have seen substantial declines in evictions.

Rental Assistance Programs:

Emergency rental assistance can bridge the gap for families facing temporary financial crises, preventing evictions and keeping children in stable homes. Programs like Indiana’s Emergency Rental Assistance Program have proven their effectiveness but need expansion and sustained funding.

Stronger Regulation of Landlord Practices:

• Implement policies to cap rent increases, regulate eviction notices, and prevent discriminatory practices against tenants.

Eviction Diversion Programs:

Mediation services and financial assistance for tenants and landlords can resolve disputes without resorting to evictions, saving costs for courts and communities.

The Moral and Economic Case for Action Failing to act on housing undersupply and tenant protections comes at an enormous cost—not only to the individuals directly affected but also to the broader community. Evictions lead to increased homelessness, greater demand on social services, and long-term economic instability. Families evicted from their homes often struggle to find stable housing again, perpetuating cycles of poverty and disadvantage.

Conversely, investing in housing supply and tenant protections yields significant benefits:

• Economic Growth: Affordable housing enables workers to live closer to jobs, reduces turnover, and attracts talent.
• Health and Education Outcomes: Stable housing improves physical and mental health, and children in secure homes perform better in school.
• Equity and Inclusion: Prioritizing housing equity addresses long-standing racial and economic disparities, creating fairer and more resilient communities.

Conclusion: A Call to Action The dual crises of housing undersupply and evictions demand bold and immediate action from local governments. By investing in housing production and enacting robust tenant protections, we can create a future where families are no longer forced out of their homes by rising rents or systemic inequities.

This is not just an economic necessity—it is a moral imperative. Housing is a fundamental human right, and it is time for local governments to lead the charge in ensuring every resident has access to a safe, stable, and affordable place to call home.