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
| Mar 13, 2014
North Carolina board recommends switch to six-year code update cycle
In a nine to six vote, the North Carolina State Building Code Council on March 11 approved moving the commercial building code (except for the electrical code) to a six-year cycle for updating instead of a three-year cycle.
| Mar 13, 2014
OSHA’s funding disclosure requirement for those offering silica rule comments draws ire
The Occupational Safety and Health Administration is requiring those who submit comments on the silica rule to disclose their funding sources for their scientific research to avoid conflict of interest.
| Mar 13, 2014
EPA publishes ‘best management practices’ rule on erosion, stormwater at construction sites
The Environmental Protection Agency published a new rule this month that will require the construction, housing, and utility sectors to carry out "best management practices" in order to prevent erosion and harmful stormwater discharges at construction sites.
| Mar 5, 2014
San Francisco board seeks remedies to code enforcement complaints
Two supervisors charged that a lack of adequate code enforcement has led to blight from dilapidated or unfinished buildings.
| Mar 5, 2014
Obama proposes $1 billion for climate change risk mitigation
President Barack Obama would spend $1 billion to “better understand the projected impacts of climate change,” encourage local action to reduce future risk, and fund technology and infrastructure that will be more resilient to climate change.
| Mar 5, 2014
Southern Forest Products Assn. revamps pressure-treated pine specifications
It provides information to assist with the proper specification and use of pressure-treated Southern Pine materials.
| Mar 5, 2014
UL, PRI Construction Materials Technologies reach product certification agreement
Underwriters Laboratories (UL) Inc. reached an agreement with PRI Construction Materials Technologies LLC (PRI) through which PRI will participate in UL's "Data Acceptance Program," enabling the acceptance of data generated at PRI toward UL product certification.
| Mar 5, 2014
Quebec's building code doesn't meet needs of its aging population
The issue was raised in the wake of a tragic fire at a seniors' residence in L'Isle-Verte.
| Mar 4, 2014
Massachusetts Congressional delegation asks FEMA to slow flood zone map requirements
After a recent successful challenge of the scientific methodology used to redraw the coastal high-hazard zones, the Massachusetts congressional delegation is asking federal officials to put the brakes on new flood zone maps for the Bay State.
| Mar 3, 2014
Injury-liability law responsible for higher construction insurance cost in New York
Construction contractors and developers in New York state face $3 billion more in costs and 667 more accidents per year because of a state law that holds builders solely liable for such accidents, according to a study commissioned by the New York Civil Justice Institute.
