PROMPT:

Housing affordability is a big problem in New York City and many other urban areas; it might be fair to call it a crisis. For instance, rents in some part of NYC grew by more than 20 percent last year; home prices primarily in the suburbs have followed a similar trend. One way that government historically has incentivized home purchases and lowered the real cost of housing is by allowing the deduction of mortgage interest from a payer’s tax liability. Additionally, there have been subsidies and special financing available to some households.
You are an analyst for a legislator in Washington DC/NYC and have been asked to provide an assessment of policy options to address housing affordability. Please draft a 2-3-page, single spaced memo covering the following questions [please modify/change/expand as necessary]:
• What is the specific public policy problem?
• What is the history/context of this public policy issue?
• What are the impacts on various stakeholders (distribution of impacts)?
• How has the government tried to assess the fundamental problem so far?
• What are other possible policy options/strategies to improve outcomes?
• Based on economic principles, which policy approach do you consider the most appropriate? Why? Please explain and make a specific policy recommendation.

General Instructions:

Split it up in sections so it’s organized, times new roman, 12pt, MLA citations,