CREATING PROBLEM STATEMENTS AND APPLICABLE RESEARCH QUESTIONS
Creating Problem Statements and Applicable Research Questions
Charles McCutchen
School of Business, Liberty University
BUSI830 Case Study Research Methods and Consulting Techniques
Dr. Steve Liegl
17 November 2024
Author Note
By submitting this assignment, I attest this submission represents my own work, and not that of
another student, scholar, or internet source. I understand I am responsible for knowing and
correctly utilizing referencing and bibliographical guidelines. I have not submitted this work for
any other class.
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CREATING PROBLEM STATEMENTS AND APPLICABLE RESEARCH QUESTIONS
Abstract
This paper argues that the plight of those who do not have the means to afford fair housing is an
issue that society will have to ultimately deal with. Homelessness is a direct factor for those who
do not have disposable income after the rent is paid. Affordable housing is due to zoning, low
wages, inflation, and laws. Diminishing demands caused by inflation only add to the economic
crisis of unemployment. Cyclical price fluctuations bring about perceived notions that the real
estate market will get better or decline so it creates a false sense of hope that homes will become
affordable causing rash decision-making. Some scholars feel technology plays a role in
expanding affordable housing, while others have researched how technology is aiding affordable
homes. As a nation, it is our responsibility to protect everyone and allow those who are less
fortunate to be allowed to have an affordable home. Addressing the problem affects renters’
rights and economic segregation and could affect how laws are passed.
Keywords: Affordable housing, inflation, government policy, zoning, technology
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CREATING PROBLEM STATEMENTS AND APPLICABLE RESEARCH QUESTIONS
Creating Problem Statements and Applicable Research Questions
Affordable housing has been an issue for several years, and there is no single point of
failure on how it continues to degrade. In 2019, less than 70% of people living in housing they
could afford, and those making less than $30,000 per year have even less of a chance to find
affordable housing (Harvard JCHS, 2020). Unaffordable housing is due to inflation, lack of
adequate income, the financial bubble, zoning, and government policies (Gyourko, 2009;
Nguyen et al., 2013; Pattillo, 2013; Wilmers, 2018; Khater et al., 2020). Inflation and minimum
wage aid in the lack of affordable housing as prices continue to increase while wages stagnate
(Calo, 2022). Zoning regulations can aid the creation of additional dwelling units (ADUs) that
are affordable for those with limited income (Calo, 2022).
To help reduce the cost of rent in an area, the effects of upzoning can increase supply,
thereby creating affordable homes (Diamond & McQuade, 2019). Programs must ensure
affordable housing can be attained by those in need if the powers that be create the zoning laws.
The government creates laws for land use and the supply and demand for housing is affected by
these laws (Büchler & Lutz, 2024). The increase of new construction in smaller regions
continues to increase demand, bringing wealthier clients and pricing others out (González-
Pampillón, 2022). Furthermore, the positive amenities make wealthier clients flock to an area,
and gentrification ensues (Ross & Yinger, 1999; Guerrieri et al., 2013).
New construction creates the fear of higher prices, rearrangement, and gentrification (Hankinson,
2018; Been et al., 2019). There are still advocates who query whether the increase in housing
will make areas more affordable (Been et al., 2019). In cities where new construction has taken
place, officials have the issue of finding adequate housing for those renters who cannot afford
rent, so new programs must come into effect to aid the low-income renters with assistance
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CREATING PROBLEM STATEMENTS AND APPLICABLE RESEARCH QUESTIONS
(Burby et al., 2003; Lee & Van Zandt, 2018). One such program that has helped in the past is the
Low-Income Housing Tax Credit (LIHTC), which subsidizes the cost of housing (Mehta et al.,
2020).
Background of the Problem
Diminishing Demand
Inflation in the 1920s made the political economist Robert Eisler draft a package to help
with the economic crisis of unemployment and lack of purchasing power (Löscher, & Wenzlaff,
2023). The events during that time were the onset of the spiral of the lack of affordable housing.
There were higher layoffs, and lower wages while consumer prices heightened, causing a lack of
affordable housing. There are millions of vacant homes year-round for many reasons, one being
that some use the homes as a second home, and some of the homes have been priced above what
those who make just over minimum wage can afford (Nechayev, 2021).
Cyclical price fluctuations
Cyclical price fluctuations are caused by an economic crisis, which lowers the demand
for housing (Tsai, 2014; 2019). Price fluctuations can be brought about by people expecting the
market to boom, thereby triggering higher housing costs (Chen et al., 2024). Inflation can also
cause price fluctuations, which affect the buying power due to lower wages and increased
interest rates. The purchasing power of homeowners has dwindled due to lower wages and the
administrative laws enacted (Dawood & Thanoon, 2020).
Technology
Technology has aided in the decline of affordable housing due to workers' diminished
incomes because technological progress demands less human interaction (Löscher & Wenzlaff,
2023). However, Gabriel et al. (2024) states that utilizing different construction techniques,
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CREATING PROBLEM STATEMENTS AND APPLICABLE RESEARCH QUESTIONS
energy-efficient products, and minimizing CO emissions can help build an influential affordable₂
housing community. Consequently, using pre-fabbed and 3D homes helps with affordable homes
because this type of technology decreases the cost and waste of building houses (Gabriel et al.,
2024)
Why Affordable Housing Needs To Be Studied
Affordable housing needs to be studied for the protection of renters, to stop income
discrimination, to decrease racial and economic segregation, and to implement new policies for
zoning laws (Goodman & Hatch, 2022). Zoning controls all aspects of the housing industry,
from location to size of the homes, and this can exclude areas and people from owning
(Goodman & Hatch, 2022). Rent control laws play a significant role in determining if housing is
affordable based on the increases the landlord can implement and how often and for what
reasons as per the law (Goodman & Hatch, 2022). Without affordable homes, homelessness and
rent will continue to increase; another issue is after paying for rent or mortgage, the homeowner
has limited funds to live off (Brooks, 2023).
Problem Statement
The general problem to be addressed is affordable housing creates an issue in the United
States, resulting in homelessness and financial strain. Gu et al. (2023) stated that homelessness
involves:
Being unable to pay rent.
Impoverished living conditions.
Spending a significant amount of their income on rent.
People who lack the income to buy a home focus on other factors to homeownership, such as
how affordable the home will be to maintain (Adabre & Chan, 2019). Affordable housing helps
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CREATING PROBLEM STATEMENTS AND APPLICABLE RESEARCH QUESTIONS
with poverty intervention, reformed living spaces, and upward mobility (Büchler & Lutz, 2024).
The specific problem to be addressed there is the expanding need for affordable housing in the
United States, resulting in homelessness and financial strain.
Research Questions
RQ1: Which variables affect affordable housing and how can this be studied nationwide?
RQ2: What role does the government play in affordable housing?
RQ3: How can those who make minimum wage afford adequate housing when they have no
money left to support their well-being?
RQ4: How do housing amenities and lack of space increase housing demand, making it
unaffordable?
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CREATING PROBLEM STATEMENTS AND APPLICABLE RESEARCH QUESTIONS
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