The Biden administration led by Treasury Secretary Janet Yellen.
Biden Administration Targets Housing Affordability Crisis with New Initiatives
The Biden administration led by Treasury Secretary Janet Yellen is unveiling new initiatives on Monday to address the rising costs of housing. These steps will strengthen existing programs and policies like tax incentives and fiscal recovery measures to tackle the ongoing shortage of affordable housing, according to the report of The Hill.
Treasury Secretary Yellen emphasized the critical shortage of housing, which has driven up prices and made housing less affordable. The initiatives aim to close the gap between housing supply and demand which has been widening for years.
(photo: CNBC)
Biden Administration’s Housing Initiative
Key parts of the plan include a new $100 million program over three years to support affordable housing funding and encouraging Federal Home Loan Banks to increase their investments in housing programs. Yellen will also push for bipartisan legislation to expand the Low-Income Housing Tax Credit and urge state and local officials to simplify regulations that hinder housing development.
The announcement follows a record-high median home price of $419,300 in May, marking the largest annual increase since October 2022. The Treasury Department’s analysis shows that housing demand has outpaced supply since 2000 exacerbated by demographic changes and the Federal Reserve’s sustained high interest rates.
