After years of tight home prices, Congress has considered competing proposals to make homeownership available to willing buyers.
There was a time in the not-too-distant past when the biggest problem home buyers faced was making sure the kitchen countertops were granite and the appliances were stainless steel. That was before the pandemic-era housing market boosted demand and home prices, which subsequently caused interest rates to rise from historic lows.
As a result, an ongoing affordability squeeze has hampered the market, making homeownership hopelessly out of reach for many young buyers. Solutions are emerging in the form of pressure on the Federal Reserve to lower interest rates (a solution favored by President Trump), creative financing concepts, and calls for millions more homes to be built to improve inventory supply.
But now the frequently gridlocked U.S. Congress is starting to have an impact, with both the House and Senate developing their own housing affordability plans.
The National Association of Realtors voted in favor of a bill by the U.S. House of Representatives called the 21st Century Housing Act that passed last Monday and will be sent to the Senate.
“NAR strongly supports bipartisan efforts in both chambers to address this crisis, and we believe Congress must act decisively to remove barriers to housing production, reform outdated programs, and provide communities with the tools they need to build more housing,” the NAR statement said. “By addressing barriers at the federal, state, and local levels, HR 6644 represents the comprehensive approach needed to expand housing opportunity and restore affordability.”
The Senate has its own affordable housing bill, the ROAD to Housing Act, so both chambers will need to find common ground on one bill or find an alternative that combines the two.
We know that things don’t move quickly in Washington, D.C., even in the best of times, and that partisan divisions make it difficult to solve our nation’s most intractable problems. From data to strategy, Inman staff and contributors have sought solutions and pointed to the silver linings of the affordability landscape.
See how affordability for homebuyers has improved this year
Affordability has improved in 37 of the 50 most populous metropolitan areas in the United States due to lower rates and rising incomes. But homeownership remains out of reach in expensive coastal markets.
Home affordability hits four-year high after interest rates fall in January
Weaker interest rates opened the door to refinancing mortgages for 4.8 million borrowers in January, the highest level in four years. However, affordability levels remain below pre-pandemic levels.
The affordable housing crisis is not just an economic issue. it’s political
Inman contributor America Foy writes that America’s attitude toward housing affordability will determine whether Congress treats housing as a priority or another issue to be omitted during election cycles.
Affordability comes from small wins, not one big beautiful bill
Progress will come through dozens of legislative, regulatory, administrative, and local reforms, each of which removes one obstacle, lowers one cost, or opens another door, writes Craig Cheatham.
The Download is a column where Inman’s Christy Murdock takes a deep dive into last week’s most read articles to give you what you need to face Monday head-on.
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