Housing is a Math Problem | Housing Coalition

SOLVING THE HOUSING EQUATION

Why does housing cost so much?

Think of this challenge as a math problem. Housing costs are determined by a string of variables that are currently putting affordable housing out of reach for many Central Oregonians. But tinker with one variable here, one variable there and housing can become more affordable for everyone in our community.

Six variables make up the housing equation:

Government fees and process
Land availability
Workforce shortages
Cost of capital
Materials
Profit

The equation looks like this--with elected leaders having great influence over the first four variables in the math problem:

Elected leaders shape these variables

We can solve this housing equation by implementing policies and investments that change the variables and lead to lower housing costs.

Partners for Affordable Housing is committed to educating community members and elected leaders on how, together, we can solve the equation and make Central Oregon more affordable for everyone. Join us!

LEARN THE MATH

Explore the housing equation with our primer on key costs and top-priority solutions.

Download Housing is a Math Problem primer!

DISCOVER THE SOLUTIONS

In 2026, PAH members worked together to create a kit of 16 solutions for solving variables in the housing equation. Click on the tabs below to investigate this policy toolkit.

Government fees and processes

System development charges, permitting fees, and the insecurity and length of the local planning process lead to high housing cost in Central Oregon. Elected leaders can drive bold strategies within local government to improve these variables and reduce housing costs.

Click here to see four solutions

Materials

Building materials have gotten more expensive due to global supply chain disruptions, inflation, and trade tariffs. Lumber, steel, and concrete costs also change quickly creating uncertainty and making it hard to keep projects on budget. While elected leaders and community members can’t control the cost of materials, by reducing costs of other housing equation variables they help builders stay on track.

Profit

Profit isn't a bad word—it's a necessary return that enables homebuilders to take on the risk of volatile housing markets and the challenge of keeping business going in good times and bad. Builders will create housing at lower price points if there is a chance to make even a small profit. We must make it possible for low and middle income housing development to pencil out with at least some profit, or communities are forced to find new revenue sources to subsidize housing that is affordable to low-income families.

Learn the Math, Housing is a Math Problem