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
Contractors | Jun 30, 2016
Chicago contractor found guilty of fraud on city’s requirement on minority-owned businesses
Alleged to have been sham business in bid to win city public works contract.
Codes and Standards | Jun 29, 2016
OSHA starts evaluation of construction industry noise standards
New studies indicate significant number of construction workers suffer hearing loss.
Seismic Design | Jun 28, 2016
ASTM International updates seismic risk standards
Expected to improve consistency of risk evaluation on commercial real estate transactions.
Codes and Standards | Jun 17, 2016
Feds publish framework for evaluating public-private partnerships
No single factor determines whether a project yields stronger benefit as a P3.
AEC Tech | Jun 17, 2016
Driverless cars could soon start impacting commercial, retail project design
Offsite parking and more space for valet parking lines are among the foreseeable changes.
Codes and Standards | Jun 17, 2016
Bay State moves toward single BIM protocol on state projects
Massport’s guidelines a step forward for integrated BIM initiative.
Multifamily Housing | Jun 14, 2016
San Francisco voters approve tougher affordability requirement on new housing development
Critics charge that the measure may backfire and actually reduce new affordable units.
Concrete | Jun 13, 2016
American Concrete Institute releases new Guide to Shotcrete
Includes information on application procedures, testing.
Healthcare Facilities | Jun 10, 2016
Top 10 health technology hazards include some influenced by space design
ECRI Institute’s annual list includes operational and workflow issues.
Codes and Standards | Jun 9, 2016
Supreme Court ruling could aid developers on properties containing wetlands
Unanimous decision allows landowners to take regulatory decisions straight to court.
