There is more than one kind of housing crisis.

The crisis we hear the most about is the crisis of supply. This is the housing crunch being felt so acutely in places like Seattle, Portland, San Francisco, Boston, New York, Lexington, and Austin.

But there is another kind of housing crisis too. It gets less attention though it is arguably more widespread. This is the crisis of demand.

In towns and cities across the country, quality housing stock is available, often at affordable prices. Yet they struggle to attract new residents. At the same time, many current residents are considering leaving because they’re not sure if a declining community is worth the investment of their money, time and affection.

According to today’s podcast guest, Paul Stewart — one of our heroes at Strong Towns — a city facing a demand crisis often resorts to what he calls “desperate bait syndrome.” In order to lure outsiders, a city is tempted to make big promises (and big compromises) that unintentionally devalue the community. But Stewart and his own town of Oswego, in upstate New York, are taking a very different approach. They are focusing on what’s there rather than on what isn’t, building on strengths rather than focusing on perceived weaknesses.

And this brilliant, incremental, neighbor-led approach is paying huge returns.