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
| Nov 26, 2014
International Green Construction Code will include option for outcome-based approach
The outcome-based approach requires the building owner to provide the building’s utility bills for a 12-month period within three years.
| Nov 20, 2014
Pentagon is reviewing hospital construction standards
An independent review panel of military specialists met with healthcare leaders Nov. 12 to consider whether construction standards for medical centers should be strengthened to align with industry best practices.
| Nov 20, 2014
ConsensusDocs releases first standard agreement for commissioning contracting
The new standard contract provides a contractual vehicle for owners to save significant money from operation and maintenance costs regarding energy performance.
| Nov 20, 2014
Revamped zoning is transforming several New Jersey downtowns
The zoning policy shift could produce the biggest transformation of North New Jersey’s downtowns since the arrival of malls pulled shoppers away from town centers in the 1960s and 1970s.
| Nov 20, 2014
ANSI approves 2015 Wood-Frame Construction Manual standard
The American Wood Council's 2015 “Wood-Frame Construction Manual for One- and Two-Family Dwellings” (WFCM ) has been approved as an American National Standard by the American National Standards Institute (ANSI).
| Nov 17, 2014
AAMA releases new blast hazard mitigation specifications for vertical fenestration systems
This document provides a guide for manufacturers, architects/specifiers, contractors, and building owners for specifying types of systems and services to meet the requirements of blast hazard mitigation.
| Nov 17, 2014
National Roofing Contractors Assn. offers guide for LEED v4 provisions
National Roofing Contractors Association has released LEED v4: Roofing-related Provisions, a document that examines the roofing-related provisions of LEED v4.
| Nov 14, 2014
Army net-zero initiative moving past pilot stage
The U.S Army's ambitious net-zero initiative has had several successful pilot trials, and planners are prepared to expand the nine-part demonstration field to scores of other Army facilities.
| Nov 14, 2014
Former U.S. Treasury Secretary Paulson works to upgrade China’s building codes
Former U.S. Treasury Secretary Hank Paulson is today focused on making new construction in China more energy efficient by working with leaders to upgrade building codes.
| Nov 14, 2014
California aims for 20% reduction in water consumption by 2020
California’s comprehensive new water use plan makes conservation a priority, reinforcing a 2009 plan to reduce statewide per capita water consumption by 20% by 2020.
