Smart Housing Policy

All families deserve a fair shot at the American Dream. As housing markets continue to evolve across the country, first-time homebuyers and low- to moderate-income households face a range of barriers to homeownership. These trends underscore the importance of advancing thoughtful, effective policies that increase housing supply and support broader access to housing.

How policy can expand housing supply

Expanding homeownership nationwide will require solutions that increase supply, unlock investment, and leverage both public and private sector capabilities:

• In a report published by the Urban Institute, researchers Daniel Hornung and Aaron Shroyer write that jurisdictions can use investment incentives like tax abatements and public land disposition to ameliorate the lack of affordable housing. "By using tools such as tax abatements, low-cost financing, and public land disposition, jurisdictions can lower the cost of delivering affordable and mixed-income housing and stretch limited public dollars further."
• Buzz Roberts, the former National Association of Affordable Housing Lenders CEO and President, noted that the Low-Income Housing Tax Credit has proven to be extremely effective at incentivizing affordable housing construction. "The good news is that we do know how to expand housing supply for the people and communities that need it most. The Low-Income Housing Tax Credit (Housing Credit) has produced more than 3.6 million affordable rental apartments, virtually all the affordable production over the past 35 years. This total is equivalent to more than one-third of the entire multifamily stock with similar rents. The Housing Credit is widely considered the U.S. government's best affordable housing production program ever."
• Valerie White, Senior Executive Director of The Local Initiatives Support Corp (LISC) New York & Head of National Housing Strategic Initiatives, describes the changes to capital needs for affordable housing over the years, noting that, with more funding sources needed, the private sector often steps in to work with local governments. "The growing gap between supply and demand for housing is attracting more investors, so the strategy is for local governments to work with the private sector and the public sector to bring in more capital."

A path forward on housing policy

Across the housing and financial ecosystems, companies are working to address national housing needs by deploying capital into homeownership, housing finance, and development projects.

As policymakers work to put this integral part of the American Dream within reach for more people, the focus should remain on solutions that meaningfully increase housing supply, support affordability, and foster long-term stability for families.

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