By Andrea Shalal
WASHINGTON (Reuters) -The Biden administration is taking steps to address a severe housing shortage in the United States by creating and selling 100,000 affordable homes over the next three years using existing funds and authorities, a White House official said.
The moves, to be announced on Wednesday, will focus on boosting home sales to individuals and non-profit organizations, while limiting sales to large investors, who scooped up one in six homes sold in the second quarter, the official said.
Demand for housing soared early in the pandemic as Americans sought more spacious accommodations for home offices and home schooling, but a shortage of homes for sale and supply chain bottlenecks have driven housing prices sharply higher.
Rental prices, which typically follow the lead of house prices, are also a big concern, given that even before the pandemic 11 million families – or nearly a quarter of all renters – were already spending more than half their income on rent, according to administration officials.
The United States has an estimated shortage of as many as 4 million affordable housing units, White House officials say.
U.S. President Joe Biden has proposed spending over $300 billion to add 2 million more affordable housing units as part of a $3.5 trillion investment package being considered by Congress, but wanted to push forward with immediate steps that could be taken now, the White House official said.
Biden was “committed to using every tool available in government to produce more affordable housing supply as quickly as possible,” the official said.
U.S. Housing and Urban Development Secretary Marcia Fudge will announce the measures after touring an affordable housing facility in Philadelphia on Wednesday.
Specific actions are planned by Fudge’s department, the U.S. Treasury and agencies such as Fannie Mae and Freddie Mac, which will increase financing opportunities to enable more Americans to purchase homes, the White House said.
The administration also plans to work with state and local governments to leverage existing federal funds, and help reduce exclusionary zoning and other practices that have discouraged efforts to boost the supply of housing.
(Reporting by Andrea Shalal; Editing by Leslie Adler and Richard Pullin)
