HUD: Without New Housing Supply, Cost Burdens to Increase
HUD released its latest research on innovative strategies being pursued by state and local governments to remove regulatory barriers to affordable housing and increase housing supply, while cautioning that without “significant” news housing, cost burdens are likely to increase.
“The research makes clear that there is bipartisan support for state and local reform to improve housing affordability,” said HUD Secretary Marcia Fudge. “HUD and the Administration will remain hard at work to build inclusive, equitable communities through affordable housing.”
The research, published by HUD’s Office of Policy Development & Research, is part of the Department’s September 1 announcement of a series of actions it is taking as part of the Biden-Harris Administration’s plan to create, preserve, and sell nearly 100,000 additional affordable homes for homeowners and renters across the country over the next three years. The research will be incorporated into HUD’s Regulatory Barriers Clearinghouse, which contains nearly 5,000 barriers and solutions and provides a catalog of information that spans all 50 states and more than 460 cities and counties.
Titled “Opportunities to Increase Housing Production and Preservation,” the research asserts without significant new supply, cost burdens are likely to increase as current home prices reach record highs, with the median home sales price reaching nearly $375,000 in July. It also makes clear the consequences that inadequate housing supply will have on homeowners and renters: In 2019, more than 37 million renter and owner households spent more than 30 percent of their income for housing.
The research cites two reports– a HUD-published report from January under the previous administration and a June report to Congress – that highlight actions state and local governments are taking to reduce barriers that are limiting housing production and preservation. These activities range from state tax policies and incentives to encourage local housing production to local zoning changes, process improvements and community engagement reforms.