Free Market Solutions to the Housing Crisis: Supporting Non-profit Housing

Much of the discussion of housing policies for low-income families involves expanding government policies and programs. Expanding policies such as inclusionary zoning and rent control, along with increasing funds for housing vouchers, are among the policies most commonly advocated by housing activists.

These policies are funded by taxpayers, and many individuals disagree with these types of expenditures. These individuals would prefer for their money to be spent on such things as the military, highways, and bridges. Or they might prefer to retain their money to spend as they choose. But government housing programs prevent this freedom of choice. Such programs force individuals to financially support programs that they may or may not agree with. And they are forced to supply that support whether the programs are effective or not.

Unlike government programs, when individuals donate to private charities, they can monitor that charity and withdraw their support if they believe the charity isn’t being effective. Unlike government programs, individuals have the freedom to donate to the causes that they support, and they can choose the amount to donate. Unlike government, which can raise taxes or print money to pay for its housing programs, private charities must rely on the voluntary donations of individuals. If those charities don’t use that money wisely, they will lose donors.

Rather than continuing to dump hundreds of millions of dollars into a variety of government housing schemes, we should be encouraging and supporting private, non-profit housing programs, such as Habitat for Humanity. Habitat’s website describes how the organization helps individuals attain better housing:

Habitat for Humanity partners with people in your community, and all over the world, to help them build or improve a place they can call home. Habitat homeowners help build their own homes alongside volunteers and pay an affordable mortgage. With your support, Habitat homeowners achieve the strength, stability and independence they need to build a better life for themselves and for their families. 

When we rely on private charities rather than government, to address the needs of low-income families, those who are concerned about such issues are free to support charity programs, and those who are not concerned are free to abstain. When we rely on private charity rather than government, we protect each individual’s freedom of choice.

Freedom of choice is an essential characteristic of a free market. In a free market, individuals are enabled to choose their values and the means for attaining those values. They are free to choose the values that they will produce without government restrictions. They are free to choose the profession they will pursue without government restrictions. In a free market, individuals are free to produce and trade values as they think best. And this includes the freedom to donate to a charity or not.