By Elizabeth Zach, staff writer
Housing supply across the country has declined for the past two years and this scarcity has caused homeownership to hit a near 50-year low. Now, with more than 80 million millennials nearing home buying age, the shortage is expected to only worsen.
While the Administration claims construction is up, it is in fact at an eight-month low, and therefore would-be homeowners have nothing to buy, analysts say. This is despite subsidized mortgages, tax breaks and low interest rates. Analysts are now saying that the federal government may be powerless to reverse the housing crisis.
“If we want housing to be more affordable, we need more houses,” Sam Khater, deputy chief economist at the housing data provider CoreLogic told Politico. “From a federal perspective there’s nothing being done.”
While federal housing policy has aided in home buying, it has been less effective in influencing supply—builders. From 2007 to 2012, the number of homebuilding companies shrank 50 percent, according to the most recent Census data. Adding to this are fewer skilled workers and smaller banks still spooked by the housing collapse of 2008, as well as costlier building materials.
To read more, go here: http://www.politico.com/agenda/story/2017/07/07/housing-crisis-shortage-no-fix-000472