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White House pledges to close affordable housing gap in 5 years

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The Biden administration has announced that it will work to alleviate the shortage of affordable housing over the next five years. ((((iStock).

Biden administration Announce new plan To ease housing costs in the United States and fill the affordable housing gap over the next five years.

Biden said in a statement on May 16 that the Housing Supply Action Plan would reduce housing costs by increasing the supply of housing available to all communities. 5 years.

The plan begins with the creation and storage of hundreds of thousands of affordable housing units over the next three years.

In a statement, the White House said, “When working with other policies to reduce housing costs and ensure affordable prices such as down payments and down payments, bridging the gap is American in all communities. Means more affordable rent and more achievable home ownership for us. ” “This is the most comprehensive government effort to solve the housing shortage in history.”

The plan focuses on building and maintaining affordable rents and affordable apartment development for low- and middle-income families. We also aim to make home ownership more accessible in communities where affordable homes are scarce.

inflation 8.3% increase every year in April, Slightly lower than March’s 40-year high of 8.5%. The housing cost portion of the consumer price index (CPI) has also increased, accounting for about one-third of the spending market. Ministry of Labor..

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Some homeowners were uncertain about their ability to pay for homes due to rising prices: Survey

Biden administration plans to increase affordable housing supply

I saw the house price Double digit increase According to the latest data from the National Association of Real Estate Agents (NAR), it occurred in nearly 75% of the metro in the first quarter of 2022.

“National prices have skyrocketed for most of the two years, including the first quarter of 2022,” NAR Chief Economist Lawrence Yun said when the report was released. “Given the very low inventories, prices are unlikely to fall, but the rise should slow in the coming months.”

The government’s plan to bring more affordable housing involves making some changes.

  • Reward areas with high-scoring zoning and land-use policies for specific federal grant processes.
  • Use the new financing mechanism to build and store manufactured homes, ancillary residential units, 2-4 unit properties, and more homes for smaller apartments.
  • Expand and improve existing federal funding, including affordable construction loan financing.
  • Make sure more government-owned homes are given to those who live in them.
  • We will work with the private sector to tackle supply chain challenges, improve building technology and complete the construction of the newest homes in 2022 in any year after 2006.

According to the report, housing supply is currently in short supply of more than 1.5 million units nationwide. Report from Moody’s Analytics..

In a statement, the White House said, “As his action plan reflects, President Biden can do the best to reduce the burden of housing costs by increasing the supply of quality housing. I believe it. ” “This means building more new homes, backed by the existing federal government, and maintaining affordable homes at market prices.

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Some say Biden’s plans haven’t been fully reached.

Despite Biden’s pledge to fill the affordable housing shortage over the next five years, the National Fair Housing Alliance (NFHA) has expressed concern that the plan has not been fully achieved.

NFHA President and CEO Lisa Rice said, “Affordable housing alone does not create a non-discriminatory housing option and does not even provide equitable access to housing opportunities.” Said. “The same is true for zoning and land-use management changes. Throughout our history, affordable plans are inadequate for fair housing monitoring and compliance, resident separation and people. It exacerbated the gap between typical home ownership and wealth.

“Century race-aware policies create housing and wealth inequalities that continue today, and only policies based on fair housing principles can remedy those inequities,” Rice continued. rice field. “Without fair housing enforcement and compliance, affordable housing challenges continue to be a factor in the lives of millions of consumers, mitigating the effects of persistent debilitation of resident isolation and discrimination. Things don’t make any progress. “

The NFHA urged the Biden administration to confirm that the plan included measures such as fair housing initiatives and funding for down payment support.

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