The Biden administration says they're taking steps to address a nationwide housing shortage. However, real estate experts are voicing their concerns with how the White House want to do it.
Supply is down and prices are up. So, the president wants to create and sell 100,000 affordable homes over the next three years for low and middle-income Americans. However, real estate experts doubt it'll have much of an impact on the market. Mike Weaster, a realtor with Graham and Co Realty Group, says Biden’s plan also has another flaw.
“The taxpayers are going to be paying for building homes, and the government’s going to dictate who the contractors are, which means that’s not going to be a fair shake to the average Joe,” Weaster said. “You’re getting government involved in facets that they shouldn’t be involved in.”
Weaster says it could lead to driving property values down in the neighborhoods where the houses are built.
“When you get the government involved in this type of thing, it never seems to benefit the real need, it only benefits the few,” Weaster explained. “Then, you’re going to put people in homes who can’t afford it, and ultimately get foreclosed on anyway. Here’s the cycle again.”
Researchers estimate the U.S. housing market is 3.8 million homes shy of meeting demand.