The Great Production Debate Affordable low-income housing developers should forego overdesigned projects and architectural frills, says housing development consultant Bob Santucci. Instead, they should concentrate on increasing production of basic, high-value housing so more of the nation's poor can have decent homes. In his response to architect Charles Buki's essay in the last issue, Santucci cautions against using limited funds for housing as a means of neighborhood enhancement. Cutting costs does not necessarily mean reducing quality. But before we focus on affordable low-income housing, let's investigate how affordability and value operate when purchasing an automobile.
High value is defined as a positive imbalance between the cost and benefits of a specific product.
To search for high value among inexpensive cars, I'm going to load my database with measurable criteria, such as five-year ownership costs, safety features, and resale price. Without the emotional constraints of prestige and ego enhancement, clear winners emerge. Because people are purchasing perceived benefits. With affordable housing, we are balancing initial cost against measurable criteria like current appraised value, utility of the space, size of the total structure and individual rooms, safety of the structure and its surroundings, included amenities, and potential resale value. Unfortunately, this initial cost can be translated into a monthly cost that is highly manipulated by reducing the interest rate.