Title: Biden Administration Pushes for Aggressive Federal Action to Lower Housing Costs
In a bid to tackle one of the biggest economic challenges facing President Biden as he gears up for re-election, economists in the Biden administration are calling for more aggressive federal action to drive down costs for home buyers and renters.
A White House report set to be released on Thursday outlines policy proposals that could see a significant federal intervention in local politics, particularly in zoning regulations that often hinder affordable housing construction. The administration is pushing for cities and localities to relax zoning restrictions to allow for the development of more affordable housing.
Jared Bernstein, the chairman of the White House Council of Economic Advisers, emphasized the importance of addressing land use regulations to make a difference in the affordable housing space. The administration believes that many local leaders are open to a bigger federal role in zoning reform, which could help override objections from local groups opposing development.
The report highlights the housing crisis that has been decades in the making, with statistics showing how home prices have outpaced wage growth, making homeownership unattainable for many middle-income families and pushing lower-income renters to the brink of poverty. A quarter of tenants now spend more than half their income on rent, highlighting the severity of the issue.
While the administration acknowledges its limited power over local zoning rules, it is advocating for using the federal budget to incentivize local governments to allow more building, including low-income housing and smaller starter homes. These policies, if implemented, could help address the longstanding housing shortage that has been exacerbated by rising construction costs and restrictive zoning laws.
The focus on housing and the endorsement of comprehensive policies to increase supply and affordability could pave the way for a bipartisan effort on the issue if Mr. Biden wins re-election. The report also acknowledges the bipartisan efforts in various states to limit cities’ control over development, signaling a growing momentum for housing reform.
Mr. Biden has been vocal about the need for federal investments in housing supply and tax credits for homebuyers, emphasizing the importance of taking action to lower housing costs. With hopes that Federal Reserve interest rate cuts will drive down mortgage rates and potentially home prices, the administration is pushing for immediate action to address the housing crisis.
As the administration lays out its blueprint for a major housing push, the issue of affordable housing is set to take center stage in the upcoming election, with Mr. Biden positioning himself as a champion for lowering housing costs for American families.
