Could Solving the Housing Shortage Help Close the Racial Gap, Too?

Abstract

Share Facebook Twitter LinkedIn Print July 26, 2022 Melissa Dittmann Tracey The nation's housing shortage has also fueled a housing inequity problem, Bryan Greene, vice president of policy advocacy for the National Association of REALTORS®, writes in an essay included in a new report, "Housing Underproduction in the U.S." To close the widening racial gap in ownership, housing's underproduction must be widely addressed, he notes. Where to Go From Here Housing supply and housing equity can be addressed on multiple fronts such as by expanding the types of housing available for greater income levels and a broadening focus on land use. Greene points to zoning reforms, investments in new construction, expansion of financing, and tax incentives that prompt investment in housing and convert unused commercial space to residential spaces. NAR continues to advocate for incentives in the tax code to promote zoning and land-use changes, such as tax credits or other support to communities that ease zoning rules that had been limiting the supply of homes, like minimum lot sizes and bans on multifamily housing. Such policies can not only help ease housing shortages but ultimately help expand housing opportunities to more people, Greene writes. "For more than a half-century we've witnessed how land-use decisions can limit housing development, affordability and equity," Greene notes. Real Estate Forecast: Market to Ease Despite High Home Prices July 28, 2022 A housing slowdown due to low inventory and rising mortgage rates will open opportunities for some buyers, NAR Chief Economist Lawrence Yun predicts.