The rate of vacant housing stock is as low as it has been in more than 30 years—a clear sign of a housing shortage for low- and middle-income households.
Moody’s Analytics economist Mark Zandi writes that policymakers must take “forceful action” to alleviate the shortage. Fannie Mae and Freddie Mac could reduce mortgage rates, he writes. “Because of the recent large cut in the corporate tax rate, Fannie and Freddie could charge a lower fee but still get the same return,” he adds.
The two mortgage juggernauts account for about half of all mortgage loans made today, mostly to households with modest means, Zandi points out. “Stiff zoning restrictions, higher permitting costs and other regulations are driving up building costs, particularly in urban areas where the shortage of affordable housing is especially acute,” he writes.
Part of the answer can come from state and local authorities. State housing authorities and Community Development Financial Institutions have the flexibility necessary to supercharge affordable home-building in places encumbered by a variety of complex and costly problems, Zandi writes. “They need lawmakers to empower them.”
Related Stories
Codes and Standards | Nov 9, 2018
Cities have multiple strategies to reduce parking requirements
Each community has to find its own mix of solutions.
Codes and Standards | Nov 8, 2018
Denver replaces green roof mandate with cool roof option
Less costly light-colored roofs can cut project costs by about 1.5%.
Codes and Standards | Nov 7, 2018
New report addresses sound transmission of wood-framed assemblies
AWC document provides empirical sound transmission model.
Codes and Standards | Nov 6, 2018
AIA releases 13 new and updated contract documents
Includes new Contractor-Subcontractor Master Agreement.
Codes and Standards | Nov 2, 2018
New Milwaukee Bucks home called world’s first bird-friendly sports arena
Design will make bird collisions less likely.
Codes and Standards | Nov 1, 2018
Several barriers holding back widespread construction of zero energy buildings
Code improvements and voluntary programs could add momentum.
Codes and Standards | Oct 31, 2018
Boston’s new flood protection plan centers on new parks
Initiative would add 67 acres of public open space.
Codes and Standards | Oct 30, 2018
San Francisco plans tougher seismic building codes
Recommendations include addressing geotechnical issues like those faced by Millennium Tower.
Codes and Standards | Oct 26, 2018
Tall Mass Timber code proposals approved at Intl. Code Council public comment hearings
Proposals now go to online voting; final outcome expected in December.
Codes and Standards | Oct 25, 2018
Low-income neighborhoods could benefit most from green roofs
Those areas face the biggest risk from extreme heat.