In Philadelphia, the country’s second-poorest big city, the demand for deeply affordable rental housing is a constant.

To better meet that need, the Philadelphia Housing Authority launched an ambitious — and costly — plan to remake and expand its vast real estate portfolio. Over eight years, the agency estimates it will spend $6.3 billion to preserve, redevelop, build or acquire roughly 20,000 subsidized units.

That translates to an average unit cost of about $315,000 — more than the market value of many Philadelphia homes.

Labor Costs
* Regulations(Approvals Take 2–3 Years)
* Rent limits (prevent self-funding repairs)
* Because of all the above buildings become so dilapidated rehabs costs have soared.

Artificially inflate costs with taxes and regulations
Artificially inflate labor costs with minimum wage
Increase the need with illegal immigrants
Decrease the available housing via regulation.

Viola! 315000-dollar boxes as living spaces.