Before the COVID-19 outbreak, a lack of affordable housing was already a significant issue in the USA. There was an increase in luxury tower blocks funded by foreign investors that further exacerbated the issue. As a result, low- and middle-income individuals’ housing options in these cities have grown increasingly limited.
According to Maxwell Drever, the reduction in homeownership and unaffordable housing has led people to question the economic benefits of homeownership. Homeownership has long been the ultimate goal, especially in wealthy countries. However, it now appears that it is a dysfunctional concept. Here are some policies that should be considered to end this housing crisis in USA.
Repurposing helps Increase More Opportunities.
Repurposing existing housing and land can help the USA increase housing opportunities. The worldwide housing crisis is far broader than merely housing because of continuing transportation challenges and the proximity of public services.
We must address land scarcity because limited land availability raises demand and, as a result, price.
Repurposing abandoned land and improving transportation links are two examples of increasing the quantity of land available for people to live in a city. As a result, making better use of existing homes and land is one option for meeting unmet housing demand.
Financing Aid and Down Payments
Financial institutions must offer innovative financing methods and aid for renters to better their financial status and credit scores to make homeownership possible. This will enable more people to qualify for a mortgage and buy a home.
Down payment aid programs exist for potential homebuyers, but they are tough to get when bidding on a property. Maxwell Drever suggests that relaxing bank regulations and allowing for lower down payments can relieve the financial burden on buyers and make housing more accessible to the middle class.
Exclusionary zoning restrictions, such as neighborhood limits on new projects in certain parts of the United States, have played a major role in the shortage of new affordable households for low-income families. Easing these restrictions can help increase access to workforce housing.
Removing regulatory barriers at the local, state, and federal levels allow more homes and apartments to be built while decreasing construction time and cost. Lowering or eliminating regulatory obstacles to constructing new homes and apartments is one of the most important policy tools for the nation, states, and local communities to make significant progress in addressing housing affordability. Currently, both the private and governmental sectors are developing better regulatory norms for housing affordability.
In a Nutshell
Even though there are no clear national solutions to housing affordability, it would be a mistake to devote all of our time on debating this issue. According to Maxwell Drever , rather than focusing on the issue, we should focus on solutions to address the housing crisis in USA. The sooner we work on resolving this problem, the better off we’ll be in the long run.