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 | Aug 14, 2018
Philadelphia adopts 2018 IECC energy code, while state opts for 2015 code
City is one of the first jurisdictions to adopt newest code.
Codes and Standards | Aug 9, 2018
Denver’s goal of 100% renewable energy by 2030 includes net zero energy buildings
Community solar programs for low income residents part of plan.
Codes and Standards | Aug 8, 2018
Too much parking in U.S. cities proving costly
As car ownership rates drop, excess parking seems more wasteful.
Codes and Standards | Aug 7, 2018
International Fire Safety Standards (IFSS) Coalition created
Professional associations and building standards organizations join forces.
Codes and Standards | Jul 31, 2018
Workers allegedly held in captivity by construction subcontractor in San Jose pay theft case
Contractor pays $250,000 in back wages in Dept. of Labor enforcement action.
Codes and Standards | Jul 17, 2018
Heat island effect can turn deadly in extreme conditions
Of all the impacts of global climate change, it’s extreme heat that kills more Americans each year than any other weather-related event.
Codes and Standards | Jul 17, 2018
NIMBYism, generational divide threaten plan for net-zero village in St. Paul, Minn.
The ambitious redevelopment proposal for a former Ford automotive plant creates tension.
Codes and Standards | Jul 17, 2018
In many markets, green features are more of a requirement for apartment renters
Renters in many U.S. cities have come to expect green features in apartments that they rent, with an eye toward energy efficiency and healthy indoor air.
Codes and Standards | Jul 16, 2018
Length of North American construction disputes continues to increase
They already far exceed global average.
Codes and Standards | Jul 12, 2018
Developer says net zero Salt Lake City apartment high-rise built at standard cost
Off-site solar, and mechanical/electrical system savings aid the achievement.
