Slump in Luxury Apartment Starts Could Hurt Cheaper Digs, Too

Plenty of policymakers in Oregon say the way to make housing more affordable is to build more affordable housing.

That can work, but it often costs precious public dollars. Jay Parsons, a rental housing economist in Dallas, says the way to boost supply of affordable apartments is to build apartments—any apartments.

For proof, Parsons compiled apartment rents from American cities. In places like Denver, where developers have erected hundreds of new apartment buildings, the price of Class C units has declined. Class C apartments are older places that need renovation—sometimes called “naturally affordable housing”—and they are a crucial resource for people who struggle to find a place within their means.

“The data directly debunks the myth that new apartments—generally built at the highest