Commentary
At one time or another, every politician—local, state, and federal—promises to help create “affordable housing.” The issue has become especially critical of late with rents and housing prices rising and higher interest rates making it more difficult to support a mortgage.
The Biden administration has responded with a five-point program. Some of its elements have merit, but from a practical standpoint, it is not likely to do much to make housing more affordable.
The problem with housing costs has indeed become more acute. According to Realtor.com, rents on average nationally have risen some 17 percent over the past 12 months. The Case-Shiller home price index reports nearly a 20 percent rise over this time. Prices of construction materials have risen some 19.2 percent, and the cost of construction services has jumped some 18.1 percent. Mortgage rates were less than 3 percent a year ago. Presently, they stand at about 5.5 percent….