How can Homeownership Be a Progressive Policy? Rethinking Affordability, Finance, and the Politics of Housing

The research brief titled "How can Homeownership Be a Progressive Policy? Rethinking Affordability, Finance, and the Politics of Housing," authored by Aidan Regan and published by the Progressive Politics Research Network, addresses the pressing issue of housing affordability in advanced economies. It highlights how rising house prices and rents have significantly outpaced wages over the last two decades, leading to public discontent and reshaping political landscapes.

Housing affordability has emerged as a defining challenge across OECD countries, with many households dedicating 20-30% of their disposable income to housing—making it the largest financial commitment for most. The brief argues that while homeownership remains a societal aspiration, access has become increasingly stratified, contributing to class and generational divides. This inequality is particularly acute in high-cost urban areas, where younger and lower-income households struggle to enter the housing market, often relying on parental support.

The brief emphasizes the destabilizing political consequences of the affordability crisis. Voters facing unaffordable housing express lower trust in government and show increased support for anti-establishment parties. The document cites a Eurobarometer survey, which identified rising housing costs as a top voter concern in European elections, and Gallup polling that found housing affordability to be a pressing issue in the U.S.

For homeownership to be considered progressive, the brief argues it must be affordable, accessible, and detached from speculative asset inflation. The author suggests that governments should treat housing as infrastructure, expand public and cooperative housing provisions, and reform mortgage systems to bridge the gap between renters and owners. The brief highlights successful examples from cities like Paris, which aims to increase publicly backed housing to 40% of its stock by 2035.

The brief provides a comparative analysis of housing systems across OECD and EU countries, indicating that while homeownership is prevalent, it remains concentrated among wealthier households. The gap between rich and poor is particularly pronounced in the U.S. and France, where younger professionals in high-cost cities face substantial affordability barriers. The brief underscores that these trends are not merely a result of individual spending habits but are shaped by local housing costs, income levels, and credit access.

The document explains the critical role of housing finance in shaping affordability. It identifies two waves of financialization that have transformed housing markets, particularly highlighting how liberalized mortgage markets have inflated prices and left many households over-leveraged. The author argues for a reform of mortgage systems to ensure that homeownership does not perpetuate speculative cycles.

To reclaim homeownership as a progressive policy, the brief outlines several strategies: expanding non-profit and public housing, reforming housing finance to curb speculation, bridging the renter-owner divide, and reframing housing as a public good. It stresses the importance of state capacity in implementing these reforms effectively and highlights the potential for these measures to unite a diverse electorate around the promise of affordable housing.

In conclusion, the brief posits that homeownership can only be progressive if it is accessible and affordable to the majority, rather than being a privilege for the wealthy. It emphasizes the need for systemic reforms that prioritize public investment in housing and tackle the underlying issues of speculation and inequality in order to rebuild trust in government and provide stability for future generations.