Labor Costs and Productivity Challenges Hinder Affordable Housing Development in the U.S.
The United States is facing a significant challenge in developing affordable housing due to rising labor costs and stagnant construction productivity. According to Julia R. Cartwright, a senior research fellow in law and economics, the construction industry has not seen productivity improvements, leading to increased costs. This situation has resulted in developers focusing on high-end units rather than affordable housing. Over the past 25 years, the share of luxury apartment construction has increased significantly, while the availability of affordable units has decreased. The construction industry is heavily reliant on labor, which accounts for about 50% of construction costs. This reliance, coupled with the inability to improve productivity, has made it difficult to build affordable housing units. 
