The bipartisan 21st Century Road to Housing Act aimed at solving the housing crisis is now law. It’s intended to increase housing supply and lower construction costs.
Owning a home has long been part of the American dream, but it’s becoming less of a reality for many as housing prices soar.
Lawrence Yun, chief economist for the National Association of Realtors, said home prices keep going up and aren’t likely to come down any time soon.
“Home prices are reaching record high conditions,” Yun said.
The median home sale price in June was $440,600, according to the National Association of Realtors. In June of 2016, it was $247,600.
That’s nearly an 80% increase in just 10 years.
High mortgage rates and not enough housing are driving up prices. Experts say there’s simply not enough homes to meet the demand.
That’s where the 21st Century Road to Housing Act can help.
The legislation is all about creating and building more homes by allowing factories and offices to be converted into apartments. It authorizes pilot programs to offer grants and forgivable loans to fix older homes that have fallen into disrepair.
“It removes some of the excessive regulations so the builders can be a little more active,” Yun said.
Critics of the bill say home building could be slowed by local zoning laws. This law includes provisions to encourage states and local governments to adopt land use and zoning policies that are more supportive of housing development.
Yun said the law won’t solve the housing crisis by itself, but taking several smaller measures to create more supply will help over time.