Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

White House tackles housing shortage with plan for 100,000 affordable homes

EconomySep 01, 2021 07:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A member of the Secret Service walks along security fence installed around the White House days after supporters of U.S. President Donald Trump stormed the Capitol in Washington, U.S., January 11, 2021. REUTERS/Kevin Lamarque/File Photo

By Andrea Shalal

WASHINGTON (Reuters) -The Biden administration is taking steps to address a severe housing shortage in the United States by creating and selling 100,000 affordable homes over the next three years using existing funds, the White House said on Wednesday.

The moves will focus on boosting home sales to individuals and non-profit organizations, while limiting sales to large investors, who scooped up one in six homes sold in the second quarter, according to a White House statement.

Demand for housing soared early in the pandemic as Americans sought more spacious accommodations for home offices and home schooling, but a shortage of homes for sale and supply chain bottlenecks have driven housing prices sharply higher.

Rental prices, which typically follow the lead of house prices, are also a big concern, given that even before the pandemic 11 million families - or nearly a quarter of all renters - were already spending more than half their income on rent, according to the White House.

The United States has an estimated shortage of as many as 4 million affordable housing units, White House officials say.

U.S. President Joe Biden has proposed spending over $300 billion to add 2 million more affordable housing units as part of a $3.5 trillion investment package being considered by Congress, but wanted to push forward with immediate steps that could be taken now, the White House said.

The plans will cover rural and urban housing projects, with a focus on aiding communities of color, where home ownership rates have lagged historically.

U.S. Housing and Urban Development (HUD) Secretary Marcia Fudge will announce the measures after touring a new five-story affordable housing complex in Philadelphia on Wednesday.

Fudge called the initiatives "significant downpayment" on Biden's commitment to boost the supply of affordable rental housing, expanding access to capital for state Housing Finance Agencies, empowering local communities to build more affordable housing and promoting equitable housing policies.

Specific actions are planned by Fudge's department, the U.S. Treasury and agencies such as Fannie Mae and Freddie Mac (OTC:FMCC), which will increase financing opportunities to enable more Americans to purchase homes, the White House said.

One key step is the revival of a joint Treasury-HUD "Risk Sharing Program" that ended in 2019 and that will enable state housing financing agencies to provide more low-cost capital for affordable housing development.

The plans will also boost the supply of manufactured housing and 2-4 unit properties by expanding financing through Freddie Mac, while taking steps to limit the sale of some U.S. Federal Housing Administration-insured properties to large investors.

Investor purchases, which have been as high as one in every four homes in some communities, have driven up prices for lower-cost houses and triggered fierce competition for starter homes, the White House said.

The administration also plans to work with state and local governments to leverage existing federal funds, and help reduce exclusionary zoning and other practices that have discouraged efforts to boost the supply of housing, the official said.

The Federal Housing Finance Agency "will begin to study the interaction between exclusionary zoning and our regulated entities," said acting Director Sandra L. Thompson.

White House tackles housing shortage with plan for 100,000 affordable homes
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
Vlad Lozovskiy
Vlad Lozovskiy Sep 01, 2021 9:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Whatever leftists touch, turns to s.... so it will be the opposite again.
Steve Dyer
WaveRunner Sep 01, 2021 8:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
History repeating itself.....but that's what politicians do. Well we'll be tearing these down in 20 yrs just like last time.
Jack Nicholson
Jack Nicholson Sep 01, 2021 8:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stop investment homes until the market levels out. If you don't live in the house you are buying or don't live in this country, you should be banned from buying a starter home for the time being. That would take pressure off supply and make homes more affordable.
Anthony Cloud
Anthony Cloud Sep 01, 2021 7:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It wouldn’t be so bad if they kept low income housing in low income neighborhoods. Sticking low income housing in a medium to high income neighborhood ruins the neighborhood.
Angus Malarkey
Angus Malarkey Sep 01, 2021 7:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
These people really have zero understanding of economics and or capitalism.
Jack Bquick
Jack Bquick Sep 01, 2021 1:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Whatever Biden engages in fails. It's like he's cursed. Opposite of a golden touch.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email