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 | Dec 21, 2021
Outdated and redundant building codes plague St. Louis area development
Region’s combined codes nearly double the length of the IRS Code.
Digital Twin | Dec 20, 2021
Groups ally to advance augmented reality and digital twin technology
AREA and Digital Twin Consortium to work on improving how technology components interoperate.
Codes and Standards | Dec 20, 2021
Tension rises in California over state’s push to build more housing
Attorney general hints at lawsuits against cities that don’t comply with zoning reform.
Codes and Standards | Dec 17, 2021
Tension rises in California over state’s push to build more housing
Attorney general hints at lawsuits against cities that don’t comply with zoning reform.
Codes and Standards | Dec 16, 2021
Home builders defeat proposed Oklahoma energy conservation code upgrade
Builders cite high home prices for opposition.
Codes and Standards | Dec 16, 2021
Laws and regulations complicate growth of community solar gardens
New projects stymied by utility resistance and legislative restrictions.
Codes and Standards | Dec 16, 2021
Property owners need systematic approach to GHG emissions reduction
Energy hog buildings at risk for becoming stranded assets.
Codes and Standards | Dec 15, 2021
Design problems now the primary cause of construction claims and disputes
More likely to occur due to more tight timescales imposed upon third parties engaged in design.
Codes and Standards | Dec 13, 2021
ABC releases guide to technology for improving safety performance
Provides details on how to identify, choose, and implement technology.
Codes and Standards | Dec 8, 2021
Construction industry is the top target for cyberattacks
Smart building tech is a new avenue for criminals.
