Editor Note:  Kerri plans to run for Bellingham City Council this year.  Click her name for brief bio.

The housing crisis is one of the most pressing challenges of our time, and yet we continue to rely on a system that was never designed to meet the needs of all income levels. The current housing industry operates like a factory built to produce luxury cars—we keep expecting it to churn out affordable bicycles. This fundamental mismatch between design and demand has left millions of Americans struggling to find homes they can afford.

For decades, policymakers have placed their faith in a supply-side approach, which gained prominence during the Reagan era and is often associated with his economic policies, believing that increasing the overall housing supply would naturally lead to affordability. Supply-side economics prioritizes stimulating production and investment to drive economic growth, often through policy measures such as deregulation and tax cuts. However, when applied to housing, this approach has consistently fallen short.

According to the U.S. Chamber of Commerce, the nation faces a shortage of over 4.5 million homes—a deficit that has driven up prices and worsened affordability.[1] Meanwhile, the median U.S. home price has skyrocketed by 45% over the past five years, reaching $418,000 in January 2025.[2] In many cities, wage growth has failed to keep pace, leaving families financially stretched to meet rising housing costs.

Local Impact: A Snapshot of Bellingham

Here in Bellingham, more than 56% of renter households are cost-burdened, paying more than 30% of their income toward rent.[3] Over the last few years, we’ve seen neighbors priced out of their homes, with some going directly into homelessness. Entire communities are destabilized as wages fail to keep up with soaring rents driven by speculative investment and algorithmic pricing.

Adding to this crisis is the rise of price-setting algorithms, which have artificially inflated rents and further distorted the market. These algorithms, used by major property management companies, analyze extensive market data to recommend profit-maximizing rents. While proponents claim they improve efficiency, critics argue they often facilitate price coordination among landlords, effectively reducing competition.

A 2024 analysis by the White House Council of Economic Advisers found that algorithmic pricing cost renters an additional $70 per month on average, amounting to $3.8 billion in excess rent nationwide.[4]These tools have significantly influenced rental markets, with some cities experiencing high adoption rates among multifamily property managers. For example, in Seattle's Belltown neighborhood, approximately 70% of apartments are managed by 10 property managers using RealPage's pricing software.[5] Nationwide, nearly 1 in 4 multifamily rental units rely on RealPage's algorithms.[6]This concentration of algorithmic pricing tools raises concerns about its impact on rent levels and housing accessibility for middle- and low-income families.

The Need for New Approaches

Tweaking the existing system is not enough. We need to fundamentally rethink how we approach housing. Innovative models such as inclusionary zoning, cooperative housing, community land trusts, modular construction, adaptive reuse, and off-market housing offer promising alternatives. These models prioritize human needs over profit margins, creating pathways to housing equity that the market-driven framework cannot achieve.

Inclusionary Zoning (IZ) is a policy tool that mandates or incentivizes developers to include affordable housing units in new residential developments. This approach directly integrates affordability into market-rate housing projects, ensuring that communities can grow inclusively rather than becoming inaccessible to low- and middle-income families. Studies have shown that IZ can be both socially and economically beneficial when paired with incentives like density bonuses or reduced permitting costs, making it an essential tool in tackling affordability.

Off-market housing—homes that are intentionally kept out of the speculative market—can provide long-term stability and affordability. These include non-profit housing, publicly owned units, and homes developed by mission-driven entities that prioritize access over profit. Community land trusts remove land from the speculative market entirely, ensuring that housing remains affordable for future generations. Modular construction reduces costs and speeds up the building process, making it easier to address housing shortages. Adaptive reuse transforms underutilized spaces, such as vacant office buildings, into affordable housing units.

These alternative models represent a shift from treating housing as a commodity to viewing it as a fundamental human right. When combined with policies like tenant protections, rent stabilization, and inclusionary zoning, they can create a more balanced housing ecosystem that serves people across all income levels.

A Call to Action

Housing is a fundamental right, not a commodity. If industries like renewable energy and technology can innovate to solve global challenges, why can’t housing? By embracing bold ideas and challenging the status quo, we can create a system that serves everyone—not just the highest bidder.

Every voice matters—whether advocating for legislative change, supporting equitable housing initiatives, or participating in community-driven solutions. As a community advocate and organizer with the Bellingham Tenants Union, I’ve spoken with countless residents—young people living with four roommates, seniors facing no-cause evictions, and families unsure how they’ll make rent next month. These stories are not anomalies; they are symptoms of a broken system.

From rent stabilization efforts (ESHB 1217) and prohibiting price-fixing algorithms (SB 5469) in Olympia to local tenant protections across the state, the momentum is building. We are not starting from scratch—we're already reimagining what housing can look like.

The solutions are within our grasp. All we need is the courage to think beyond the familiar and build a future where housing is accessible, equitable, and sustainable for all.