In the Wilson Quarterly, Witold Rybczynski asks “why can’t we build affordable home?” He acknowledges that it seems like a strange time to ask the question, with housing prices so low, but he says
one of the reasons we are in this mess is that people bought houses they couldn’t really afford. At some point in the future, consumer confidence will be restored and people will start buying houses again. Pent-up demand, and the inevitable delays in restarting an industry that has seen the withdrawal of many home builders, will likely produce a spike in prices, and once again the affordability issue will come to the fore.
Rybczynski is thinking in terms of single family detached houses that are commercially built. His example is the Levittowner.

These were among the first mass produced houses. Built right after World War two. the basic Levittowner had 3 bedrooms and sold for under $10,000 (under $90,000 today)
After examining housing sizes, design methods and materials, as well as construction methods, he determines that most of the run up in housing prices is due not to the house itself, you could build a 1,000 square foot house at an equivalent cost to the Levittowner, but rather to the shortage of “service” land to build houses. He blames several factors for this
- Proposition 13 and other similar measures made it more difficult if not impossible for municipalities to finance the upfront costs of preparing new communities. Instead, it was up to developers to pay for roads, sewers and other infrastructure. These costs were passed on to the buyer.
- Lower cost housing would depress the prices of existing homes in the same neighborhood. Therefore, current homeowners press municipalities to restrict growth by increasing lot sizes, and making less land available for development. This increases the cost of each lot. To compensate for the expensive lot, home builders create McMansions, making the cost even more expensive.
Rybczynski points out that these policieshave
another, less happy effect: It pushes growth even farther out, thus increasing sprawl. While large-lot zoning is often done in the name of preserving open space and fighting sprawl, in fact it has the opposite effect.
Bigger houses also require more materials, use more energy to heat and cool, and in general are not good for the environment.
He concludes by acknowledging a vicious circle
Smaller houses on smaller lots are the logical solution to the problem of affordability, yet density—and less affluent neighbors—are precisely what most communities fear most. In the name of fighting sprawl, local zoning boards enact regulations that either require larger lots or restrict development, or both. These strategies decrease the supply—hence, increase the cost—of developable land. Since builders pass the cost of lots on to buyers, they justify the higher land prices by building larger and more expensive houses—McMansions. This produces more community resistance, and calls for yet more restrictive regulations. In the process, housing affordability becomes an even more distant chimera.
OK, as far as it goes, but I think he misses several crucial points.
1. Most of early Levitt homes were built for rental, not sale.
2. War veterans were returning in massive numbers, immediately increasing the demand for housing.
3. What made the Levittown possible and successful was the existence of large tracks of land near moderately paying but good, stable jobs. Levittown in NY is close to the Hicksville Station of the Long Island Railroad, bringing workers into the NYC at a reasonable price. Levittown in Pennsylvania was built largely for workers at a nearby steel mill. Where are these kind of jobs today?
Recreating a Levittown, even the more modern version, is not, in my opinion feasable. We do need a higher density of housing in many areas, but to support it, we need to put other things in place. For one thing, we need better transit systems. In addition, we need to rebuild the kind of manufacturing base that can support the workers that will populate these houses.
Rather than try to recreate the world of the 50′s we may be better looking to revitalizing our cities, and building for sustainablility. Perhaps the best ideas are do be found in the Congress for the New Urbanism Sustainbly developed housing built to infill existing urban areas.