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lexandria Ocasio-Cortez's social housing bill has garnered attention, thanks in part to her star power and a New York Times op-ed announcing the legislation. While fans of affordable housing models have cheered her ideas, real estate professionals have expressed skepticism about their feasibility. Housing expert Jay Parsons took both sides, acknowledging that more affordable housing is needed but questioning the wisdom of spending billions to prove a point.

    We're in a housing crisis, and resources are limited. Experimenting with new programs won't solve the problem; instead, we need efficient and scalable solutions. Public housing projects have been a failure due to concentrated poverty and underfunding. The government's role should be to facilitate supply meeting demand, not to own and operate housing.

    AOC's bill would undo the ban on public housing projects, which were notorious for their poor conditions and lack of funding. Other models, where the government helps pay for housing but doesn't own it, are also problematic. Building affordable housing in San Francisco costs around $1 million per unit, making it unsustainable at scale.

    AOC's notion that housing is expensive because it's built and operated for profit is misguided. Profit-seeking capitalists provide a wide range of products and services affordably, including housing. Nonprofits would still have to pay contractors, staff, and other expenses, just like for-profits do. AOC's idea to prevent price appreciation by capping sales prices has downsides, such as limiting residents' ability to save for retirement or move to a new home.

    The best part of AOC's plan is building energy-efficient housing, which will be cheaper in the long run and reduce carbon emissions. However, her other suggestions are not well thought out. If profits were responsible for high housing costs, nonprofits and governments would be able to build housing affordably. Excessive price appreciation is a problem, but historically, homes have appreciated at 3-4% annually. AOC's plan should focus on supplementing traditional housing development, which works in many markets when local governments allow it.

    AOC's voice is needed in the fight against the supply problem, but she has been silent on major housing developments in her own district facing opposition. Instead of niche solutions appealing to her base, we need comprehensive and effective solutions that address the root causes of the crisis.