The Blubber

Biden wants to give 500,000 Americans money to buy homes, per Newsweek.


The Biden administration announced on Thursday its intention to assist hundreds of thousands of households in achieving homeownership, as part of a broader initiative to address housing costs, increase the supply of affordable homes, and alleviate the growing financial burden of homebuying for Americans.

Lael Brainard, the director of the White House's National Economic Council, expressed the administration's support for the Neighborhood Homes Investment Act. She stated that the act aims to "promote homeownership for an additional 500,000 households while increasing neighborhood revitalization investments." Brainard urged Congress to take action on the proposal during her speech.

The legislation, introduced by Senators Ben Cardin (D-MD) and Todd Young (R-IN), introduces a federal tax credit to fund "the development and renovation of 1-4 family housing in distressed urban, suburban, and rural neighborhoods," according to a draft of the bill. The lawmakers believe it could benefit 500,000 homes and generate $125 billion in development revenue over the next decade.

Amidst the Federal Reserve's efforts to combat record inflation, the housing market has experienced turbulence, marked by rising interest rates, soaring mortgage costs, increased home prices, and a decline in housing supply.

Brainard suggested that President Joe Biden may not wait for Congress and mentioned initiatives such as advocating for zoning reforms to facilitate the construction of affordable homes. The Department of Transportation is also making low-cost loans available for housing development near transportation.

To assist first-time buyers struggling with affordability, the administration has worked to reduce costs through the Federal Housing Administration program. This effort includes a reduction in mortgage insurance premiums by 0.3 percent, resulting in annual savings of around $1,200 for a homebuyer purchasing a median-priced home.

Biden's proposed budget includes a down payment assistance program for first-time homebuyers, aimed at addressing the racial gap in homeownership by helping families without the advantage of generational wealth building.

The administration is also focusing on helping renters, with Brainard noting that they have assisted 100,000 low-income households in securing rent at 30 percent of their incomes.