Sen. Elizabeth Warren of (D-MA) has introduced a Bill to get the government in the business of building, renting and maintaining homes in underserved communities. This would put the federal government in charge of managing nearly two million homes for low income families.
Spending half a trillion dollars is not the answer to affordable housing.
Housing prices have largely risen due to high demand, low inventory and the government spending trillions in stimulus money during and after the pandemic which, combined with record low interest rates, gave housing opportunities to millions of buyers who were previously unable to afford a home. Many of these same people are now not moving into their second home because they have been priced out of upgrading with the return of 7% interest rates. Many are also sitting on a current rate of below 4% and are unwilling to give up their rate.
Reducing government spending and lowering inflation will enable the Federal Reserve to lower interest rates which will spur economic development.
The government has exacerbated this problem with with untenable regulations and red tape. In Los Angeles, where they are desperate for affordable housing, has been building 49 units for 17 years and has been stalled by every road block that California State Law will allow.