The White House just released the Housing Supply Action Plan. The plan’s goal is to ease the growing housing burden across America. According to the White House, this plan will ease the burden by boosting the supply of quality housing nationwide over the next five years. The Biden Administration says the plan begins with building and renovating more than 300,000 affordable housing units. Leaders say this is the most comprehensive effort to close America’s Housing Gap.
U.S. Housing and Urban Development Secretary, Marcia L. Fudge, was on hand for the Biden Administration’s historic announcement. In addition to closing America’s housing supply shortfall, the plan will also mean more affordable rent and more attainable homeownership in every community across the country.
When the price of everything, including rent, reaches record highs the plan will also help renters. The administration says there will be a particular focus on building and preserving rental housing for low- and moderate-income families. Leaders say this plan will also reduce prices pressures in the market right now. For Example, the Consumer Price Index housing costs make up about one-third of of the market basket for inflation.
Under the plan the Administration will:
- Reward jurisdictions that have reformed zoning and land-use policies
- Deploy new financing mechanisms to build and preserve more housing where financing gaps currently exist
- Expand and improve existing forms of federal financing
- Ensure that more government-owned supply of homes and other housing goes to owners who will live in them – or non-profits who will rehab them – not large institutional investors.
- Work with the private sector to address supply chain challenges and improve building techniques to finish construction in 2022 on the most new homes in any year since 2006.
Housing Supply: Why is it critically low?
How did America’s housing supply get so critically low? Experts say it did not simply happen overnight. In addition to rising inflation, leaders say America built the fewest homes since the 1960’s over the last decade. While demand for new homes and apartments grew, America’s housing supply remained stagnent. Additionally, Moody Analytics reports the nation faces a shortfall of 1.5 million homes. This shortfall is slamming family budgets along with driving rising inflation rates. Again, the Biden Administration says boosting the supply quickly is the best way to ease the burden.
Navigate Affordable Housing Partners is committed to advancing quality, affordable housing choices for all. We believe that well-built, livable, and quality housing is essential. Anyone who needs to report a housing complaint can do so here. Also, anyone needing assistance paying rent can find those resources here.