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 | Sep 30, 2021
U.S. has a deficit of 5 million homes
Builders unable to keep pace with demand.
Codes and Standards | Sep 29, 2021
Mass Timber group study will compare structural round timber to glulam products and steel
Will compare costs, capabilities, and carbon impacts of structural materials.
Codes and Standards | Sep 28, 2021
Massachusetts creates Commission on Clean Heat
First-of-its kind body to set targets for buildings to reduce emissions from heating fuels.
Codes and Standards | Sep 27, 2021
Commercial real estate industry faces SEC climate disclosure regulations
Risks associated with climate change would have to be revealed.
Codes and Standards | Sep 22, 2021
Group proposes Carbon Use Intensity metric for new buildings
Plan would track embedded carbon on projects.
Codes and Standards | Sep 22, 2021
Illinois’s sweeping climate bill includes statewide stretch code, building electrification measures
Aims for zero-emissions power sector by 2045.
Codes and Standards | Sep 22, 2021
Cities need to step up flood mitigation efforts to save lives
Recent storms highlight climate change dangers.
Codes and Standards | Sep 21, 2021
Steps to improve ventilation for Covid can combat colds and flu
New look at airborne disease spread shows time viruses linger in air may have been underestimated.
Codes and Standards | Sep 15, 2021
USGBC will change leaders, conduct strategic review
Aims to ensure organization is ‘well positioned to scale its work in the post-pandemic world’.
Codes and Standards | Sep 15, 2021
LEED-certified offices earn higher rents than non-sustainable properties
Are also more resilient to dips in real estate market.
