When there’s a strong bipartisan sentiment in Washington, DC, we take notice. And the issue of affordability in the housing market is one of the top concerns for domestic policy. Any cooperation across party lines on this subject would be welcomed by the American people.
Ironically, two houses might stand in the way of affordability in the housing market, unless you, the reader, take action.
See what you can you do at the end of this column.
The other day, “The Senate passed the measure, known as the 21st Century ROAD to Housing Act, by a wide bipartisan margin of 89 to 10,” according to Kaia Hubbard with CBS, reposted on msn.com. “Sponsored by Sens. Elizabeth Warren, a Massachusetts Democrat, and Tim Scott, a South Carolina Republican, the bill aims to streamline the building of new homes and ease regulations to cut costs. It would also prohibit institutional investors from purchasing single-family homes, a provision that the White House has sought.”
Earlier this week, I was able to attend the press conference for Senator Rev. Raphael Warnock (D-GA), who worked to include that provision, limiting the ability of private equity to dominate the housing market with purchases, which could price individuals out of the market.
Having researched the concerns of Norbert Michel and Jerome Famularo of the Cato Institute, a free-market think-tank, about the bill, I pressed Senator Warnock about the wisdom letting government pick who could buy homes or who one could sell homes to.
“Right now, the government is doing just that with policies that incentive the purchase of these homes by private equity,” Senator Warnock responded to me. “The tax code encourages this. Give balance to the process. Houses are often built for investors.”
Warnock continued in responding to other questions. “People don’t have access to home ownership across Atlanta. Atlanta is ground zero for this. Wealth never returned to many people after the Great Recession.”
Earlier this year, the House overwhelmingly passed a version of this bill. But as Hubbard points out “[O]pposition from some House conservatives has threatened its passage. The legislation includes a temporary ban on the central bank issuing digital currency, which some lawmakers want to make permanent.” And while Trump backs the ROAD bill, said he won’t sign anything until his SAVE Act is passed.
When asked at the press conference about potential roadblocks in the House of Representatives, and the announcement about Trump refusing to sign the bill until the SAVE Act passes, Warnock responded. “All legislators must ask who you are working for. I put up with politics because every now and then you get a win. This is a great piece of legislation, but only a first step. It’s part of a more comprehensive bill. The current average age of first-time home-buyer is 40. And we are five million homes short across this country for our housing needs.”
Additional research of mine shows that many younger Americans have come to expect that they won’t ever own a home and won’t save up for one. With more attention to affordability in the home purchasing market, we might see more of the youngest generation being to prepare to be first-time homebuyers.
If you want to do something about affordability in housing, or block this, contact your House of Representatives member here, and the White House, here.