Joe Biden has big plans for the housing market, and especially for housing affordability. CNBC says Biden’s housing plan could relieve buyers by easing the pressure on home prices and supply. Possible proposals from Biden’s housing plan could include a $15,000 first-time homebuyer tax credit, which would be immediately accessed and used for a down payment. In addition, Biden is predicted to urge big banks to return to FHA lending, and he wants to ramp up residential construction. These policy changes could help first-time buyers, who made up 32% of all November home purchases—a low compared to the typical 40%.
The tax credit could exacerbate the inventory shortage, by juicing demand even more. But the nation’s homebuilders, who have had a difficult time keeping up with demand, could also get a boost from Biden. They have been hampered by the high costs of land, labor, materials and regulations.
The Trump administration’s restrictive immigration policies exacerbated an already severe labor shortage for builders, as many documented and undocumented construction workers had left the industry during the last housing crisis. As the construction industry flourished again, some workers were still afraid or unable to come back into the U.S.
Advertisement
Related Stories
Economics
The US Housing Market Faces Uncertainty, But There Are Signs of Recovery Ahead
There’s improvement, just don’t expect the housing market to return to pre-pandemic norms
Demographics
Despite Having Nondiscriminatory Housing Laws, LGBTQ+ Community Still Can’t Afford Homes in These Areas
In cities where LGBTQ+ people make up the largest share of the adult population, less than 10% of homes are affordable
Market Data + Trends
1.5M Housing Units Need to Be Added to Balance US Housing Market
The housing market will likely see challenges persist if inventory isn’t added to accommodate growing demand