The Fed Can’t Issue a Building Permit
A lower mortgage rate may help a family afford a house, but it will never solve America’s housing affordability crisis. That is because the price of borrowing is only part of what determines whether a family can afford a home. The other side of the equation, which Washington has neglected for too long, is whether we allow enough homes to be built in the first place.
TL;DR
- Lower mortgage rates do not solve the housing affordability crisis.
- The ability to afford a home depends on both borrowing costs and the availability of housing.
- Washington has neglected the issue of allowing enough homes to be built.
- The national housing debate focuses too much on the Federal Reserve and mortgage rates.
- Zoning restrictions, permitting delays, and regulatory costs hinder new housing construction.