- The White House is providing $100M in grants to state and local governments to spur housing construction, focusing on reducing regulatory barriers and encouraging local reforms.
- The U.S. is seeing record levels of housing construction, particularly in multifamily units, but single-family home production remains low.
- The initiative involves several federal agencies, including HUD and the Dept. of Transportation. It aims to streamline permitting, financing, and regulations.
As reported in Bloomberg, the Biden administration has announced a $100M initiative to boost housing construction in a significant push to address the nation’s housing shortage.
This new effort will focus on expanding low-cost financing, easing regulations, and incentivizing local governments to reform zoning laws and other barriers to development.
Record-High Production
The announcement comes as the U.S. experiences record levels of housing construction, particularly in multifamily units.
In June alone, 60K multifamily units were completed, reflecting a pandemic-driven boom. However, despite this surge, single-family home production has hit a four-year low, and overall construction levels have been falling since December.
Federal Firepower
With the Federal Reserve holding interest rates steady and Congress blocking significant tax credits, the Biden administration is turning to a range of administrative actions to sustain housing production.
These actions include measures across several cabinet-level agencies to streamline permitting processes, increase financing options, and reduce regulatory burdens.
Local Reform Focus
The White House’s strategy also involves doubling down on the Department of Housing and Urban Development’s (HUD) program, which aims to incentivize local and state governments to eliminate barriers to housing.
The program does not fund individual projects but instead seeks to build long-term capacity for housing growth. For example, Bend, Oregon, received a $5M grant to develop a plan to increase housing construction and address local infrastructure challenges.
Widespread Demand
The demand for this new program is high, with $13 in requests for every available dollar during the first cycle.
Additionally, the initiative includes changes to the Department of Transportation’s financing program to better support transit-oriented housing developments.
The administration is also expanding low-cost federal financing through a public-private risk-sharing initiative that has contributed to the construction of tens of thousands of affordable housing units since 2021.
Why It Matters
As the Biden-Harris administration rolls out this new housing initiative, Vice President Kamala Harris has highlighted the importance of affordable housing in her campaign, though her team has not yet released a detailed housing plan.
Harris has praised the administration’s executive actions, emphasizing that affordable housing is essential for all Americans.
