Pres. Biden’s Plan for affordable housing

During his speech, Biden addressed a number of housing-related topics. 

“If inflation keeps coming down, mortgage rates will come down as well,” he said. “But I’m not waiting. I want to provide an annual tax credit that will give Americans $400 a month for the next two years as mortgage rates come down to put toward their mortgage when they buy a first home or trade up for a little more space.”

Biden also talked about eliminating title insurance fees for federally-backed mortgages and urged Congress to “pass my plan to build and renovate 2 million affordable homes and bring those rents down.”

In response, NAR President Kevin Sears issued a statement praising efforts to increase housing supply. He also raised concerns about Biden Administration regulations that could create hurdles to affordability. 

“NAR first sounded the alarm on this issue with original research showing a nationwide shortage of 5.5 million affordable housing units. We commend President Biden’s commitment to an all-of-government approach to solve this problem. NAR has proposed and advocated for many of these proposals, which together would make serious headway toward fixing this crisis,” Sears said. 

“Tax incentives can help close the affordable housing gap, and we are especially grateful for the President’s willingness to explore new tax measures. NAR also supports an all-of-the-above approach to this crisis — from tax incentives to zoning reforms to expanded financing.  

“NAR shares concerns of other housing industry groups that other administration measures, especially in the area of rental housing, run the risk of reducing the supply of affordable rental housing if onerous regulations drive small property owners from the market and discourage future investment. The administration’s increasing focus on housing production, however, signals a positive turn, as the housing shortage is the root of our affordability crisis.”