Mortgage and real estate leaders see hope in administration's plan to boost housing supply
The White House’s plan to repurpose commercial properties into residential units as a solution to the housing crisis has sparked a wave of reactions across the real estate and mortgage industries.
This bold move, aimed at tackling the nation’s severe housing shortage, has been met with both enthusiasm and a keen sense of urgency from key industry figures.
Bob Broeksmit, president and CEO of the Mortgage Bankers Association (MBA), expressed strong support for the plan: “MBA shares the Biden administration’s commitment to increasing housing supply and appreciates its willingness to engage with us and the industry on ways to incentivize lenders and borrowers to rehab, repurpose, and convert more obsolete commercial properties into affordable rental housing and other usable spaces,” he said.
Broeksmit further addressed the current challenges faced by housing providers, such as high-interest rates and escalating labor and construction costs, against the backdrop of an inadequate housing supply. He believes that the new initiatives should facilitate more commercial-to-residential projects and urges state and local governments to align zoning laws, tax credits, and subsidies to maximize the benefits of these programs.
Echoing this sentiment, National Association of Realtors president Tracy Kasper acknowledged the significant underinvestment in housing, leaving a deficit of approximately 5.5 million homes.
She commended the administration’s efforts, saying, “With many office buildings sitting empty, converting underused commercial space into multifamily housing is an innovative, tangible, and sensible solution that will also address housing affordability, which is currently at a historic low.”
Read more: NAR challenges not alarming to everyone
Kasper underscored the potential economic benefits, including job creation and community revitalization, stemming from such conversions.
“Even relatively modest steps will reduce the underbuilding gap while unleashing tremendous economic activity into our communities, creating millions of new jobs, and igniting economic growth where it is needed most,” Kasper added.
National Association of Home Builders (NAHB) chairman Alicia Huey, while congratulating Rep. Mike Johnson on his new role as Speaker of the House, also weighed in on the housing affordability crisis.
Huey expressed optimism about working with the new leadership to address the housing affordability crisis.
“With the nation in the midst of a housing affordability crisis, we look forward to working with the new speaker and Democratic and Republican lawmakers in both chambers to extend the National Flood Insurance Program and pass other important legislation that will allow builders to construct more homes and apartments to move housing and the economy to higher ground,” she said.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
