WASHINGTON, D.C. – Buyers and renters across the nation have a hard time securing an affordable home. It’s an issue that plagues millions of Americans. Both presidential candidates have different plans on tackling this issue but in a recent congressional hearing, experts said the impacts of this issue go way beyond the housing market.
Affordable housing shortages are a long-standing challenge. The Government Accountability Office said high interest rates and low inventory contribute to the issue. Recently the Federal Reserve cut interest rates, which could make it easier for people to buy homes which would increase demands. Some say it could lead to more competition among homebuyers, which in turn could drive up home prices, but the lower rates could make it easier for homebuilders to get loans and build more homes, which could provide some relief to the high demand. Experts said when families cannot afford housing, it adds stress on other economic factors, like affording food, healthcare, education and more.
“Businesses in both urban and rural areas struggle to attract and retain talent because workers cant afford to live nearby, thereby stifling business expansion, innovation and productivity,” said Greta Harris, Better Housing Coalition President and CEO.
Making housing more affordable is a hot button issue for this November’s election. Vice President Kamala Harris said she wants to provide first-time homebuyers with up to 25-thousand dollars to help with down payments. Some worry this plan could lead to higher home prices. They are also concerned about additional government spending.
“Inflation has thankfully eased over the past years largely due to action taken by the Fed but that shouldn’t be used as an excuse to once again open up a spending spicket,” said Sen. Chuck Grassley (R- IA).
Part of former President Donald Trump’s plan is to reduce mortgage rates by slashing interest rates but that power lies with the Federal Reserve. He also wants to deport undocumented immigrants, which could free up some housing but economists worry it would also impact the construction work force and eventually limit new housing supply.
But both sides agree: this is a bipartisan issue.
“Securing affordable housing is a building block of financial wellbeing,” said Sen. Sheldon Whitehouse (D-RI). “Being able to afford a home provides not just shelter but community and stability.”
