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 | Apr 9, 2020
Owners retrofitting properties, monitoring performance during epidemic
Covid-19 outbreak may lead employers to reevaluate office commitments.
Codes and Standards | Apr 7, 2020
Dept. of Labor publishes guidance on paid sick leave, expanded family and medical leave
Includes fact sheets for employees, employers, and a questions and answers document.
Codes and Standards | Apr 1, 2020
Standards and codes meetings halted, postponed
ASTM International cancels in-person standards meetings; DOE’s National Energy Codes Conference postponed.
Codes and Standards | Mar 26, 2020
Ransomware attack on Canadian contractor underscores need for cybersecurity
Victimized company Bird Construction has defense, law enforcement contracts.
Codes and Standards | Mar 23, 2020
Contractors should scrutinize contracts carefully amid Covid-19 crisis
Compliance with time-sensitive notice requirements and careful documentation required.
Codes and Standards | Mar 23, 2020
Florida legislature passes bill to reduce retainage on state and local projects
House and Senate vote is nearly unanimous; law would go into effect Oct. 1.
Codes and Standards | Mar 20, 2020
Feds prod use of eminent domain to force people out of flood-prone homes
Local officials that don’t comply could lose federal money to combat climate change.
Codes and Standards | Mar 19, 2020
ASHRAE provides COVID-19 resources for operating, maintaining HVAC systems
Includes recently approved position document on Airborne Infectious Diseases.
Codes and Standards | Mar 19, 2020
CaGBC launches new version of its Zero Carbon Building Standard
Version 2 draws on lessons from more than 20 zero carbon projects.
Codes and Standards | Mar 16, 2020
Concrete industry reduces carbon footprint by 13% over five years
Result mostly due to more efficient use of Portland cement.