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
Codes and Standards | Oct 17, 2022
Ambitious state EV adoption goals put pressure on multifamily owners to provide chargers
California’s recently announced ban on the sale of new gas-powered vehicles starting in 2035—and New York’s recent decision to follow suit—are putting pressure on multifamily property owners to install charging stations for tenants.
| Oct 13, 2022
Boston’s proposed net-zero emissions code has developers concerned
Developers have raised serious concerns over a proposed new energy code by the City of Boston that would require newly constructed buildings over 20,000 sf to immediately hit net-zero emissions goals.
Building Team | Oct 12, 2022
Real estate development practices worsened impact of Hurricane Ian
A century ago, the southwest Florida coast was mostly swamps and shoals, prone to frequent flooding and almost impossible to navigate by boat.
Standards | Oct 11, 2022
Peter Templeton named new USGBC and GBCI president and CEO
The U.S. Green Building Council (USGBC) and Green Business Certification Inc. (GBCI) appointed Peter Templeton as president and CEO.
Legislation | Oct 10, 2022
Chicago’s updated building energy code provides incentives for smart HVAC, water appliances
The Chicago City Council recently passed the 2022 Chicago Energy Transformation Code that is intended to align with the city’s goal of reducing carbon emissions by 62% from 2017 levels by 2040.
Contractors | Oct 6, 2022
Modular construction gets boost from impacts of the pandemic
The impact of the Covid pandemic on the construction industry appears to be fueling demand for modular construction methods, especially in the western U.S. and Canada.
Fire and Life Safety | Oct 4, 2022
Fire safety considerations for cantilevered buildings
Bold cantilevered designs are prevalent today, as developers and architects strive to maximize space, views, and natural light in buildings. Cantilevered structures, however, present a host of challenges for building teams, according to José R. Rivera, PE, Associate Principal and Director of Plumbing and Fire Protection with Lilker.
Resiliency | Sep 30, 2022
Designing buildings for wildfire defensibility
Wold Architects and Engineers' Senior Planner Ryan Downs, AIA, talks about how to make structures and communities more fire-resistant.
| Sep 30, 2022
Lab-grown bricks offer potential low-carbon building material
A team of students at the University of Waterloo in Canada have developed a process to grow bricks using bacteria.
| Sep 27, 2022
New Buildings Institute released the Existing Building Decarbonization Code
New Buildings Institute (NBI) has released the Existing Building Decarbonization Code.