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 | Nov 19, 2021
Creating net-zero/net-positive buildings is top priority in Green Building Trends 2021 report
Findings also demonstrate compelling business case for building green.
Codes and Standards | Nov 19, 2021
Construction Startup Competition 2021 awards highlight tech innovations
AI-powered software to identify and explain critical issues in construction contracts takes top prize.
Codes and Standards | Nov 18, 2021
Infrastructure bill contains $5 billion for energy efficiency in buildings
Wide range of programs to reduce energy use, improve materials, train workers.
Codes and Standards | Nov 17, 2021
Skanska will provide embodied carbon assessments on all new projects over 53,000 sf
Will use the Embodied Carbon in Construction Calculator it helped create.
Codes and Standards | Nov 16, 2021
NOAA, Univ. of Maryland, and ASCE partner on climate-smart engineering codes, standards
Efforts will account for climate change in future infrastructure design and construction.
Codes and Standards | Nov 15, 2021
Intl. Code Council and Modular Building Institute release new off-site construction standards
‘Will create consistency for off-site construction; accelerate the industry’.
Codes and Standards | Nov 12, 2021
GSA will likely shrink federal office space post-COVID
Agency also needs to address maintenance backlog.
Codes and Standards | Nov 10, 2021
Los Angeles launches fast-track office tenant improvements program
Red tape to be cut to make interiors healthier and safer.
Codes and Standards | Nov 9, 2021
Florida state building professionals call for mandatory high-rise building inspections
Group recommendation comes in wake of Surfside condo collapse.
Codes and Standards | Nov 8, 2021
Dept. of Energy to fund 10 pilot smart building projects
Connected communities will accelerate renewable energy adoption and grid resilience.
