Due to Soaring Housing Prices... White House to Announce Supply Expansion as Early as the 1st

[Image source=EPA Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] The Joe Biden administration is set to announce housing supply measures soon to curb the rise in U.S. home prices.

On the 31st (local time), The Wall Street Journal (WSJ), citing a draft plan prepared by the White House and sources, reported that "the government is currently preparing housing supply measures."

The measures focus on expanding housing construction and financial support. Discussions include expanding existing grant programs for Community Development Financial Institutions (CDFIs) to increase supply and increasing investment in rental apartments by government-sponsored mortgage entities Fannie Mae and Freddie Mac.

The plan also includes giving first-time homebuyers priority opportunities to purchase federally guaranteed housing. Sources said, "The White House could announce the measures as early as the 1st."

U.S. home prices and rents have surged recently. According to the National Association of Realtors (NAR), the median price of existing homes in July was $359,900, an 18% increase compared to a year ago.

The main cause of the recent sharp rise in home prices is limited supply. Especially after the COVID-19 pandemic, demand to move to suburban homes near major cities has increased, causing home prices around cities to soar.

Pete Mills, Senior Vice President of Housing Policy at the Mortgage Bankers Association, said, "The Biden administration's move is appropriate and productive. The housing supply issue is a serious problem. While Congress considers a larger plan, we must do what we can administratively."

This content was produced with the assistance of AI translation services.