The White House is outlining its plan to make housing more affordable for renters and to repair 2 million homes as prices climb.
Millions of Americans cannot afford home ownership or pay rent because they do not have enough money to save enough money to pay the down payment for a new house. Standard & Poor’s CoreLogic Case-Shiller reported this week that house prices rose 19.1% year-on-year in June due to wealthy buyers buying high-priced homes at low interest rates.
Biden’s series of new initiatives are aimed at increasing housing supply—you can only do so much in Congress, but every bit helps.https://t.co/60bfXS0jp1
— Matthew Iglesias (@mattyglesias) September 1, 2021
Potential measures by the Biden administration are aimed at improving the construction and financing of residential and rental properties.https://t.co/XE3DC8pRab
— The real deal (@trdny) September 1, 2021
Jump threat Biden’s ambition As part of his main campaign pledge, center the American economy on the middle class. The two key victories that Biden achieved in the 2020 election campaign were in Arizona and Georgia, where the populations of these two states are increasing through the construction of new houses.
The White House Council of Economic Advisers issued analyze The issue of national housing affordability highlights the problems of housing supply not keeping up with population growth, zoning restrictions, and shortage of tenant supply. The White House reports that a quarter of renters spend half of their income on rent, and 47% of renters spend more than the recommended 30%. There is also a shortage of public housing. Nearly 2 million people live in public housing, including children, the elderly and the disabled.
Researchers at mortgage buyer Freddie Mac estimate that the United States is 3.8 million The family cannot meet the necessary needs. In order to increase residential construction, the Biden team proposed two major policy changes.
First, the government intends to build 100,000 units within three years and will increase the availability of mortgage loans through Freddie Mac and Fannie Mae for the manufacture of houses and buildings with 2 to 4 units. The government also plans to make it easier for potential homeowners and non-profit organizations to buy homes that failed to sell in the foreclosure auction.
The government will also increase its opinions on apartment financing through tax credits, loans and grants.
Second, the Biden government plans to renovate 2 million homes. This includes the use of federal subsidies, low-income housing tax credits, new tax credits for the construction of economically disadvantaged communities, and encouraging local and state to abolish exclusive zoning and land use policies. Governments restricting new construction.
The White House warned that supply shortages may persist.
