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
| Aug 16, 2012
Harness saves life of worker cleaning Washington state Capitol
Fall-protection equipment helped save the life of a worker who was cleaning the Washington state Capitol building in Olympia, after the platform he was using gave way.
| Aug 16, 2012
CSI webinar on August 21 focuses on electronic energy control
The Construction Specifications Institute (CSI) is sponsoring a free webinar on August 21 at 2:00 p.m. (EDT) on electronic energy control.
| Aug 16, 2012
Public sector pushes sustainable building forward
Not usually noted for its innovation, the public sector has done the most to advance sustainable building, according to a recent panel of green building professionals.
| Aug 16, 2012
Canada’s first net-positive building under construction in Milton, Ontario
The GreenLife Business Centre in Milton, Ontario near Toronto is set to become the first net-positive energy building in Canada.
| Aug 9, 2012
St. Paul cannot adopt overly restrictive egress windows policy, court rules
The Minnesota state Court of Appeals rejected St. Paul's attempt to adopt a policy on egress windows that was stricter than state law.
| Aug 9, 2012
Fire chief questions building code after St. Louis apartment building fire
A blaze that destroyed a 197-unit apartment building in St. Louis, Mo., displacing 250 residents, led the city’s fire chief to question the materials used in the construction of the four-story building.
| Aug 9, 2012
Ramps have strict criteria for ADA compliance
It is important for businesses to understand that an existing ramp at a building entrance may not mean that barrier removal obligations under the Americans with Disabilities Act have been met.
| Aug 9, 2012
ClickSafety, AGC provide online training program for construction professionals
Construction professionals will be able to take a wide range of mandatory and optional safety training programs online through a new collaboration between the Associated General Contractors of America and ClickSafety.
| Aug 9, 2012
Tornado-ravaged Greensburg, Kansas’s new green buildings save $200K a year
The town of Greensburg, Kan., virtually destroyed by a tornado in 2007, decided to rebuild 13 public buildings according to green standards.
| Aug 2, 2012
FBI investigates Turner, Tishman, Skanska, and Plaza Construction for billing practices on public projects in New York
After charges filed against Bovis Lend Lease in April led to an admission of guilt and $56 million in fines for overbilling clients, federal prosecutors are investigating the billing practices of four more New York City construction firms, according to reports.