Biden Administration Introduces New Affordable Housing Measures

As home prices and rents continue to climb higher, the Biden administration is taking new steps to address the affordable housing crisis.
  • The White House is launching initiatives to boost affordable housing, including a new $100M program.
  • Treasury Secretary Janet Yellen remains focused on the housing supply shortfall, and aims to expand the Low-Income Housing Tax Credit.
  • The new initiatives are meant to counteract record-high home prices and ongoing high interest rate challenges.
Key Takeaways

As reported on The Hill, the Biden administration unveiled new measures to boost affordable housing in response to rising housing and rent costs.

According to the Associated Press, Treasury Secretary Janet Yellen announced the initiatives on Monday, emphasizing the importance of addressing the longstanding housing supply shortfall.

What’s Being Proposed

The Treasury Department’s announcement highlights several new steps to strengthen affordable housing programs and policies. Among these initiatives is a new program that will allocate another $100M over the next three years to support affordable housing funding. 

Additionally, the administration is urging Federal Home Loan Banks to increase their spending on housing programs.

Yellen also called on Congress to pass bipartisan legislation to expand the Low-Income Housing Tax Credit, a crucial tool for financing affordable housing. She also pressed state and local officials to remove legal hurdles to housing development.

Broader Implications

This announcement comes amid record-high home prices. In May, the median price of sold homes reached $419.3K, 6% higher YoY and the largest gain since October 2022.

The surge in home prices is compounded by the Federal Reserve’s decision to maintain interest rates at a 23-year high of 5.25–5.5%.

Future Outlook

The Biden administration’s new measures to boost affordable housing couldn’t have come sooner. High rates have strained affordability, making these initiatives timely. 

But only time will tell how much these new measures will cut into the supply shortfall, and whether they will make housing more accessible to a meaningful number of low- and middle-income Americans.

View All
Steve Ross Steps Down from Related, Launches West Palm Firm
July 12, 2024
Private Equity Seeks Bargains in US Real Estate
July 11, 2024
Powell Hints at Possible Rate Cut Amid Risks of Higher-for-Longer
July 10, 2024
Apartment Absorption Nears Record High in Q2
July 9, 2024


No CAP by CRE Daily

No Cap by CRE Daily is a weekly podcast offering an unfiltered look into commercial real estate’s biggest trends and influential figures.

Join 65k+
  • operators
  • developers
  • brokers
  • owners
  • landlords
  • investors
  • lenders

who start their day with CRE Daily.

The latest news and trends in commercial real estate delivered to your inbox. Get smarter about what matters in just 5-minutes or less.