White House Report Outlines Plan to Address 10 Million Unit US Housing Shortage
A new White House report identifies a critical shortage of 10 million housing units in the United States, attributing the deficit to a dramatic decline in homebuilding following the 2008 financial crisis. The analysis, prepared by the Council of Economic Advisers, argues that reducing regulatory burdens, termed the bureaucrat tax, could lower construction costs by over $100,000 per unit and spur the creation of up to 13.2 million new homes. This expansion is projected to boost annual economic growth by 1.3 percentage points and support two million jobs. The report presents both a political risk and opportunity for President Donald Trump, whose approval ratings have suffered due to inflation concerns and geopolitical tensions, including the US-Israel war on Iran which has driven mortgage rates to 6.37 percent. While Trump has signed executive orders to ease regulations and aid smaller banks, he has previously expressed a desire to keep home prices high for existing owners. The document highlights a stark mismatch between an 82 percent rise in home prices since 2000 and only a 12 percent increase in incomes, making affordability a primary concern for younger voters.
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White House Report Outlines Plan to Address 10 Million Unit US Housing Shortage
A new White House report identifies a critical shortage of 10 million housing units in the United States, attributing the deficit to a dramatic decline in homebuilding following the 2008 financial crisis. The analysis, prepared by the Council of Economic Advisers, argues that reducing regulatory burdens, termed the bureaucrat tax, could lower construction costs by over $100,000 per unit and spur the creation of up to 13.2 million new homes. This expansion is projected to boost annual economic growth by 1.3 percentage points and support two million jobs. The report presents both a political risk and opportunity for President Donald Trump, whose approval ratings have suffered due to inflation concerns and geopolitical tensions, including the US-Israel war on Iran which has driven mortgage rates to 6.37 percent. While Trump has signed executive orders to ease regulations and aid smaller banks, he has previously expressed a desire to keep home prices high for existing owners. The document highlights a stark mismatch between an 82 percent rise in home prices since 2000 and only a 12 percent increase in incomes, making affordability a primary concern for younger voters.
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