The White House wants to address the housing shortage. Here is what he offers.

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Biden administration officials on Wednesday released their plan to expand access to housing and address the nationwide housing shortage that has helped fuel faster than average house price increases.

Home prices this spring and summer have risen at a record pace, with strong demand outstripping weak supply. Amid concerns over housing affordability, a group of economic advisers led by Council of Economic Advisers Jared Bernstein detailed the White House’s approach to increasing the stock of homes to buy and rent.

Through actions such as expanding certain financing options, changes to a tax credit for low-income builders, and expanding awareness of federally owned homes, the administration hopes to expand the offer. single-family and multi-family dwellings. “HUD, FHFA and Treasury estimates show that these agencies will create, maintain and provide nearly 100,000 affordable housing units over the next three years,” the authors wrote.

The authors also called on Congress to strengthen the affordable rental housing stock and housing for low- and middle-income buyers through tax credits, grants and zoning changes. “According to HUD, these investments will add or rehabilitate approximately 2 million homes nationwide,” the authors wrote.

Economists have attributed the lack of housing supply to a variety of factors, including land and labor shortages, building material costs, and zoning restrictions that favor the construction of single-family homes. The supply is insufficient for homeowners and renters, White House officials said.

“The Covid-19 pandemic has altered families’ preferences for location and type of housing, exacerbating existing supply chain constraints which, for several reasons, have persisted for many years,” the report says. “These pandemic-related changes have interacted with the existing housing shortage, leading to a sharp increase in the prices of owned homes and rental housing.”

The plan comes a day after the S&P CoreLogic Case-Shiller Home Price Index data was released for June, reflecting an 18.6% gain in prices nationwide. The annual increase was the highest reading in at least 30 years and the third consecutive month that price increases have set such a record.

Write to Shaina Mishkin at [email protected]