Millions of United States citizens are failing to reap the advantages of homeownership due to the lack of supply says Maxwell Drever. The shortage is more visible amongst the affordable homes. Not to mention, the low and middle-income families, younger first-time homebuyers, and people of color are facing extreme problems and losing their confidence that they will ever be able to afford a permanent home.
The United States should supply more than 5.5 million housing units to counter the affordable housing problem. Developing more affordable homes for first-time homebuyers and low and middle-income families, and providing these families with affordable and reliable financing tools so that they don’t face problems affording the homes, is essential to solving the affordable housing crisis in the United States.
Many experts believe the affordable housing crisis first started during the Great Recession. The rate of per-capita has decreased a lot. Nowadays, even the millennials face problems affording homes due to their financial issues.
Here are some ways you can address the housing shortage of the United States:
Incentivize New Construction of Affordable Homes – Maxwell Drever
Financial incentives can motivate the builders to develop more affordable housing for the many millennial and first-time home buyers. Possible incentives can run the gamut, from subsidies to federal support.
Lift Condo Lending Restrictions
The condominium constructions, which are undoubtedly one of the most important factors for first-time buyers, face a major problem. The rate is a record low. The local, state, and federal Governments are sponsoring agencies to implement restrictions on condo lending, developing a massive barrier to first-time homebuyers who require a loan says Maxwell Drever. This might turn to the development of the for-sale condominiums.
Focus on the Manufactured Building
Modular, manufactured, precut, and penalized homes are among the most crucial pieces of the puzzle. They are built partially or entirely in factories and assembled on the construction site. These numerous forms are undoubtedly an eye-catching solution as they take less production cost than the homes, says Maxwell Drever.
Before 1995, developers used to ship more than 250,000 manufactured homes. However, nowadays, developers fail to deliver even 80,000 homes. As per various reports, if Government increases the production, the nation might overcome the lack of affordable housing. The flexibilities of building code and expanded zoning can enhance manufactured housing development.
Improved Financing for Existing Homes
The existing housing stocks of the United States are affordable. However, the older homes require a thorough repairing process. People who depend on the affordable market home cannot purchase a house and repair it independently due to the complications of the mortgage finance system. Most lenders will lend as per the property’s current value, which isn’t enough to lend money for the repairing process. Due to this, the potential homeowners might fail to purchase or invest in homes.
None of these measurements will succeed at enhancing the supply of affordable homes if Government doesn’t empower the borrowers. What are your thoughts? Comment below to let us know.