Good afternoon, and welcome to the New York Fed. It’s wonderful to see so many of you here in person and online for the fourth event in our Economy That Works for All series.
The New York Fed is a mission-driven organization. And these gatherings go to the heart of our mission, which is to make the U.S. economy stronger and the financial system more stable for all segments of society.
In prior years, we have used these events to discuss issues like equitable growth and low-income homeownership.
Today, we’re going to talk about a topic that comes up in almost every conversation I have with business, government, and community leaders throughout the Second District—and that is housing affordability. It is not an exaggeration to say that this is the No. 1 economic topic in our region today.
Before I go further, let me give the standard Fed disclaimer that the views I express today are mine alone and do not necessarily reflect those of the Federal Open Market Committee (FOMC) or others in the Federal Reserve System.
Housing affordability affects different groups in different ways. For households, it encompasses not only the cost of buying or renting a place to live, but also the ways those costs affect the lives of individuals and families.
If rent or a mortgage payment takes up most of a household’s income, affordability becomes unaffordability. This creates ripple effects that can impact the ability of a household to afford other essentials, such as food, clothing, transportation, healthcare, childcare, and so much more.
The repercussions reverberate through all aspects of our economy. Housing affordability affects the ability of communities to attract businesses, and it affects the ability of employers to attract and retain workers—and grow their businesses.
As an economist, I naturally think about economic issues through the lens of supply and demand. Imbalances between supply and demand not only affect inflation and employment, but also access to housing, healthcare, childcare, and broadband. Restoring the balance between supply and demand is one of the biggest challenges faced by policymakers at local, regional, and national levels.
Look no further than our experience over the past five years, when the pandemic and its aftermath delivered enormous shocks to the economy. New York City and this region were hit particularly hard. Businesses closed, unemployment surged, and many people who were able to work remotely moved away.
Today, it’s a very different story. As the economy came into balance, businesses reopened. We more than recovered the jobs lost during the pandemic. And the demand for housing surged.
But the recovery has been uneven. With regard to housing, demand far exceeds the available supply, contributing to high costs and limiting the ability of our region’s economy to reach its potential. Meeting this demand is critical to achieving sustained economic prosperity.
And that’s what brings us here today. The New York Fed’s efforts in this area are shaped by three verbs: connect, convene, and catalyze. We connect stakeholders with the latest data and research. We convene stakeholders in forums such as this one to share best practices and thought leadership. And we aim to catalyze action.
To that end, you’ll hear more about the impact of higher housing costs on individuals and communities. We’ll discuss best practices that can help increase the supply of housing for low- and middle-income families, as well as help them manage the burden of housing costs. The goal is that these discussions will help identify promising solutions that will help tackle the housing affordability problem.
We have a number of terrific speakers and panelists. I want to thank them all for their participation—and for their dedication to this important work. So, without further ado, let’s get started.
