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
| Jun 5, 2012
Baltimore officials vow to block $1.8 billion urban renewal project
Baltimore officials want to block a $1.8 billion urban renewal project until more neighborhood residents and minority contractors are hired and displaced residents can benefit from the revitalization.
| Jun 5, 2012
OSHA launches campaign to warn of heat dangers in outdoor work
The Occupational Safety and Health Administration has begun a campaign to warn outdoor workers about the dangers of heat exposure.
| Jun 5, 2012
AGC’s Safety and Health Conference focuses on regulations, legislation
More than 150 industry professionals and other attendees will participate in the Associated General Contractors of America’s (AGC’s) safety and health conference July 11-13 in Washington, D.C.
| Jun 1, 2012
New BD+C University Course on Insulated Metal Panels available
By completing this course, you earn 1.0 HSW/SD AIA Learning Units.
| May 31, 2012
Proposed change in Michigan’s building code would hurt innovation, say critics
Legislation pending before the Michigan Senate would change the law that calls for building codes to be updated every three years to require an update only every six years.
| May 31, 2012
Natural gas industry opposes federal carbon-neutral construction rule
The natural gas industry and some allies are working to block a federal green building rule that was expected to be a national model for carbon-neutral construction.
| May 31, 2012
Lawsuits push the legal boundaries of green building definition
This article explores some legal issues stemming from lawsuits in which plaintiffs have charged developers with not delivering on a promised level of sustainability.
| May 31, 2012
ANSI approves Green Building Initiative’s design standard
The Green Building Initiative (GBI), a Portland, Ore. nonprofit organization, has had its new consensus-based standard for the design, construction, and operations of environmentally friendly buildings approved by the American National Standards Institute (ANSI).
| May 31, 2012
USGBC testing Minnesota buildings to see if they are living up to LEED standards
The Minnesota chapter of the U.S. Green Building Council (USGBC) has teamed up with EnergyPrint, a St. Paul, Minn. energy consulting firm, to study the energy and water use of more than 150 buildings in the state that have LEED certification.
