In the midst of the United States’ frozen housing market, President Joe Biden recently unveiled a $258 billion housing proposal that will mark a significant stride toward addressing the pressing issue of affordable housing. With soaring prices and declining availability, the American housing market has become increasingly inaccessible to many, particularly low- and middle-income families.
Biden’s plan aims to tackle the current affordable housing crisis through a multifaceted approach, including reforms to tax credits for homebuyers and sellers, as well as initiatives to boost housing development. One of the key components of Biden’s housing proposal encompasses mortgage relief as well as a middle-class family tax credit plan.
According to Forbes, one of Biden’s proposed housing plans aims to incorporate a one-year tax credit of up to $10,000 for middle-class families that sell their starter homes to another owner-occupant. Another proposal includes mortgage relief credit for first-time middle-class homebuyers of up to $5,000 for two years, reducing the buyer mortgage rate by over 1.5 percentage points for those two years.
Focusing on equitable access to homeownership while also adjusting the stability in the housing market, Biden wants to prioritize investments in housing development to address the shortage of affordable units. Through targeted funding and regulatory reforms, the proposal aims to encourage growth in the construction of new homes, particularly in areas facing acute housing shortages. By increasing the supply of affordable housing, the plan would then alleviate the pressure on prices, making homeownership more feasible for aspiring buyers.
Although Biden’s housing plan seems to set the starting foundation for a better approach to affordable housing, the question of what more can be done remains for the majority of young adults who lean more toward the comfort of renting apartments.
For FSU alum Marshauri Murray, the practicality of the housing market has reached a point that outstretches most young adults’ stream of income, and limitations on buying out homes for rental purposes should be put in place.
“I feel like the housing market today is not realistic for Gen-Z to purchase homes promptly, as we’ve seen the shift from one income being able to buy homes to now at bare minimum two incomes are required to purchase a home. To be able to experience the ‘American Dream,’ I think Joe Biden’s idea is a good idea, but what $10,000 worth of tax credit won’t put much of a dent in a $400,000 home,” Murray said. “In my opinion, there needs to be a cap on the amount of homes a person can buy for rental purposes for an extended period. For example, you can only buy 10 houses in 5-10 years, if you plan on renting those homes.”
Florida A&M graduating senior Jaden Gelin says the housing market operates on a scale that gravely determines his outcome of potentially owning a home.
“I feel that Biden’s housing plan could work for certain states, but overall the state of the housing market is currently in an ‘eat or be eaten’ stage, due to the skyrocketing prices and inflation. All in all, it plays a huge role in any future plans of me buying a home,” Gelin said.
Biden’s proposal may offer hope for a better future to prospective home buyers. The plan opens the door to opportunities that were previously out of reach for many by addressing homeownership barriers and limited affordable housing options. This not only includes the capability to purchase and own a home but also the associated benefits of stability, wealth accumulation, and community investment.