{"id":436,"date":"2022-05-18T16:34:26","date_gmt":"2022-05-18T16:34:26","guid":{"rendered":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2022\/05\/18\/president-biden-thinks-he-can-fix-the-housing-crisis-is-he-right\/"},"modified":"2022-05-18T16:34:26","modified_gmt":"2022-05-18T16:34:26","slug":"president-biden-thinks-he-can-fix-the-housing-crisis-is-he-right","status":"publish","type":"post","link":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2022\/05\/18\/president-biden-thinks-he-can-fix-the-housing-crisis-is-he-right\/","title":{"rendered":"President Biden Thinks He Can Fix The Housing Crisis. Is He Right?"},"content":{"rendered":"

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President Joe Biden<\/strong> has a new plan to fix the severe housing shortage that is plaguing America, leading to record-high home and rental prices. The fate of the nation\u2019s housing market hangs in the balance.<\/p>\n

The administration\u2019s Housing Supply Action Plan<\/a>, released on Monday, has an ambitious stated goal: It aims to increase the supply of housing enough to end the inventory shortage within five years.<\/p>\n

Much of the plan focuses on providing financial incentives for communities to allow more smaller homes to go up and offer financing for builders who put up more lower-priced housing. The president anticipates the result will be more affordably priced housing<\/a> available for homebuyers and renters.<\/p>\n

\u201cThere are some creative ways of tackling the housing shortage. \u2026 This plan tries to make it easier to fund building smaller, more affordable units so they actually get built,\u201d says Realtor.com Chief Economist Danielle Hale<\/strong>. However, \u201cit\u2019s unclear how much of a difference all of this will make, especially in the short term.\u201d<\/p>\n

Based on demand, the nation is short about 5.8 million single-family homes\u2014which don\u2019t include condos, rental apartments, and other forms of housing, says Hale.<\/p>\n

Biden\u2019s plan would make it easier for communities that allow more home construction, including smaller homes and rentals, to receive federal grants. It is also attempting to increase the construction of single-family homes in rural areas.<\/p>\n

The president hopes to provide more financing options for builders who preserve and construct affordably priced housing. It would also encourage more manufactured housing, which can include mobile homes, smaller multifamily buildings, and accessory dwelling units. ADUs are usually smaller, standalone dwellings on a homeowner\u2019s property that are often rented out or used for aging parents.<\/p>\n

\u201cThe Plan will help renters who are struggling with high rental costs, with a particular focus on building and preserving rental housing for low- and moderate-income families,\u201d according to the administration\u2019s document. \u201cThe Plan\u2019s policies to boost supply are an important element of bringing homeownership within reach for Americans who, today, cannot find an affordable home because there are too few homes for sale in their communities.\u201d<\/p>\n

And the administration hopes new regulations would give homebuyers an edge over investors in many foreclosure auctions. More homes that go into foreclosure that have government-backed loans would be available to buyers who want to live in them and nonprofit organizations for 30 days before the sales would open to large investors. That is an increase from the current 10-day period.<\/p>\n

The housing crisis is so pronounced because few homes went up in the aftermath of the Great Recession, when the housing bubble burst. Fast-forward to today, and many millennials are hitting peak homebuying years. They\u2019re a larger generation than Generation X, which came before them.<\/p>\n

That means there are more buyers and not enough homes for sale\u2014causing prices to spike.<\/p>\n

Renters are feeling financial pain as well. Since many renters can\u2019t find homes for sale, or can\u2019t afford what little is available, they\u2019re forced to continue renting. That extra demand for rentals has boosted prices to all-time highs.<\/p>\n

\u201cThe housing shortage is a problem that affects Main Street. Most people pay a mortgage or rent every month,\u201d says Hale. \u201cIf you want to benefit everyday Americans, tackling the housing shortage is a way to do it.\u201d<\/p>\n

Will Biden\u2019s plan solve the housing shortage?<\/h2>\n

While it\u2019s unclear whether the president will achieve his goal of ending the housing shortage in five years, many believe these new policies can\u2019t hurt.<\/p>\n

\u201cIt will make a big difference in housing in the very low-income space and government-subsidized space,\u201d says\u00a0Jerry Howard<\/strong>, CEO of the National Association of Home Builders. But he isn\u2019t convinced it will help most middle-class homebuyers.<\/p>\n

\u201cI\u2019m not sure that it\u2019s geared toward what we think is the linchpin of the market: first-time homebuyers,\u201d says Howard.<\/p>\n

He would like to see the federal government ease some of the regulations, such as environmental and labor rules, which make it more expensive to put up homes. Many were rolled back under President Donald Trump\u00a0<\/strong>and then reinstated under Biden.<\/p>\n

This newest plan comes on the heels of Biden\u2019s proposed 2023 federal budget<\/a>. In it, his administration wanted to increase the funding of the U.S. Department of Housing and Urban Development by 21% to expand rental assistance to more low-income tenants, increase the number of affordable housing units available, and help more Americans become homeowners.<\/p>\n

The budget, which was released in March, has yet to be approved by Congress.<\/p>\n

Biden\u2019s administration is still urging Congress to pass legislation to offer tax credits to build and rehab homes for lower- and middle-income buyers. These properties would not be available to big investors.<\/p>\n

The administration has already taken steps to affect the housing market by reducing the duties charged on softwood lumber from Canada. This makes the lumber, used to build homes in the U.S., a little less expensive for builders. Biden has also been fighting racist appraisals<\/a> and other policies that disproportionately hurt communities of color.<\/p>\n

\u201cThis is the first time since 1990 that anyone has made housing a federal [priority],\u201d says NAHB\u2019s Howard of the newly produced plan. \u201cWe applaud a lot of what\u2019s in there. We think there is more that can be added in it.\u201d<\/p>\n

The post President Biden Thinks He Can Fix The Housing Crisis. Is He Right?<\/a> appeared first on Real Estate News & Insights | realtor.com\u00ae<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Getty Images President Joe Biden has a new plan to fix the severe housing shortage that is plaguing America, leading to record-high home and rental prices. The fate of the nation\u2019s housing market hangs in the balance. The administration\u2019s Housing Supply Action Plan, released on Monday, has an ambitious stated goal: It aims to increase…Read More→<\/a><\/p>\n","protected":false},"author":0,"featured_media":437,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-436","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/comments?post=436"}],"version-history":[{"count":0,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/436\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media\/437"}],"wp:attachment":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media?parent=436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/categories?post=436"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/tags?post=436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}