White House releases plan to address US housing shortage of approximately 10 million

US White House Estimates Housing Shortage, Regulatory Cuts Could Boost Economy

A new report by the White House Council of Economic Advisers has outlined a plan to address the US housing shortage, estimating that there are currently 10 million fewer homes than needed. The analysis suggests that reducing regulatory burdens on home construction could lead to increased building activity, lower prices, and improved economic growth.

According to the report, regulatory costs associated with home construction amount to over $100,000 per project, including changes to building codes, compliance expenses, and zoning approval fees. By reducing these costs, the administration estimates that up to 13.2 million new homes could be built, resulting in an average increase of 1.3 percentage points in annual economic growth over the next decade.

The report also notes that the current housing shortage has driven up home prices, with average rates for 30-year mortgages increasing from around 6% to 6.37%. The White House has taken steps to address this issue, including signing executive orders in March to reduce regulatory burdens on mortgage lending and purchasing mortgage-backed securities.

The report’s findings are expected to be released as part of the annual Economic Report of the President, which is scheduled for release later this month. The administration is likely to use these estimates to make a case for reducing regulations on home construction, potentially including federal funding incentives for states and local governments that reduce regulatory costs.

The White House has maintained that it is committed to addressing the housing shortage and improving economic growth, despite concerns about its public approval ratings.

Source: Al Jazeera