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
| May 23, 2013
AGC Contractors Environmental Conference focuses on compliance issues
The 2013 AGC Contractors Environmental Conference June 13 and 14 in Arlington, Va., will include cost-effective strategies for firms to remain compliant and competitive.
| May 23, 2013
ASTM releases new carbon steel hollow structural sections
ASTM has released a new HSS standard, A1085 - 13 Standard Specification for Cold-Formed Welded Carbon Steel Hollow Structural Sections (HSS).
| May 23, 2013
Group Health Puyallup medical center first project to achieve 'LEED for Health Care' certification
The Group Health Puyallup (Wash.) Medical Center is the first facility to be certified under the LEED for Healthcare (LEED-HC) rating system, earning LEED Gold.
| May 17, 2013
LEED v4 has provision to reduce water use in cooling towers
The next version of the U.S. Green Building Council's LEED rating system will expand water-savings targets to appliances, cooling towers, commercial kitchen equipment, and other areas.
| May 15, 2013
New York City Council okays plans for Cornell's huge net-zero tech campus
Cornell University's proposal to build a two million sf tech campus on Roosevelt Island has been approved by the New York City Council.
| May 15, 2013
Center for Green Schools, Architecture for Humanity release new tool for green schools
The 70-page guide demystifies the processes of identifying building improvement opportunities and finance and implementation strategies.
| May 15, 2013
AAMA extends NAFS certification on fenestration products
The American Architectural Manufacturers Association (AAMA) announced the release of an interim procedural guide that will provide a documented, optional process to extend current, unexpired AAMA product certification to any edition of AAMA/WDMA(/CSA) 101/I.S.2(/A440), North American Fenestration Standard/Specification for windows, doors, and skylights (NAFS).
| May 9, 2013
New developments would face tougher stormwater rules than redeveloped sites under EPA proposal
New developments would have to meet more stringent stormwater-retention standards than redeveloped sites under a forthcoming Environmental Protection Agency proposal.
| May 9, 2013
Proposed ASHRAE systems manual uniform procedure guideline open for public review
A proposed guideline that will establish a uniform procedure for transmitting design, construction, testing, and operational information to building owners and operators is open for public comment.
| May 9, 2013
Post-tornado Greensburg, Kan., leads world in LEED-certified buildings per capita
Six years after a tornado virtually wiped out the town, Greensburg, Kan., is the world's leading community in LEED-certified buildings per capita.