The Shadow
At the core of the American dream is homeownership.
The home is where we grow as families, unwind after a hard day’s work, feel safe and enjoy privacy.
Homeownership often changes the lives of struggling families. A big day in my family’s life came several years after my parents divorced, leaving my mother to raise my sister and I in several different apartment complexes before she was able to buy a small house in a good neighborhood. That affected what schools we would go to, the friends we would make and our outlook on life. The friends I made, whose families varied from working class to college professors, impacted my outlook and education. This is why I am a proponent of eliminating unreasonable barriers for working families to purchase a home.
Unfortunately, opportunities for families have dwindled. Prospective homeowners continue to grow increasingly frustrated.
For younger people and prospective first-time homebuyers especially, homeownership feels like it is out of reach.
One major issue is that the prices of homes are just too high.
To put things in perspective, one recent report from realtor.com and the National Association of Realtors highlights the affordability challenge that households face.
In 2019, a family making $75,000 a year could afford about half of all home listings. Now, they can afford less than a quarter.
Moreover, supply shortages complicate matters and affect the lack of affordable housing.
The U.S. Chamber of Commerce notes that a severe shortage of over 4.7 million homes has negatively impacted the U.S. economy. They estimate that Virginia has lost more than $10 billion in economic output as a result.
As demand for homes surges, burdensome zoning and permit regulations continue to stall the efforts of American developers to build more homes. Further regulations include onerous environmental reviews under the National Environmental Policy Act (NEPA).
It should be noted that the housing crisis does not just affect urban and suburban parts of the country. The crisis has serious impacts on rural communities too.
According to a brief by the White House Council of Economic Advisers (CEA), rural house prices have risen six times faster than the pace of rural homeowner incomes.
Given the impacts on all communities, American homebuyers need help.
When it comes to federal policy, I am optimistic that one potential solution has support in Congress.
I recently voted in the House for the 21st Century ROAD to Housing Act. The bill passed the House but awaits action in the Senate.
This legislation removes barriers that impact ready-to-use, pre-approved home designs. With a standard housing design and layout, we expedite the permit approval process, empower homebuilders and deliver new homes for American families.
Additionally, some housing-related activities are exempt from NEPA review.
Instead of shovels collecting dust, our bill helps homebuilders start planting shovels.
This bill does not just provide better opportunity for homebuilders, but for homebuyers as well.
We modernize the U.S. Department of Housing and Urban Development (HUD) Home Investment Partnerships Program (HOME). HOME creates affordable housing options for low-income households.
Further, HOME grants will support building and rehabilitating affordable housing. This will help ease the blow of construction costs that hit developers.
Our housing bill also places restrictions on large institutional investors. Such entities that own more than 350 single-family homes are generally prohibited from purchasing any more.
Taken together, these actions will boost housing inventory, correct some of the supply-demand imbalances in the housing market and moderate costs.
These actions are meant to produce a domino effect in all American communities. That is why our housing bill calls upon state and local governments to be integral partners in creating opportunities for homebuilders.
Each locality, whether it be urban, suburban or rural, knows what works and what does not work for their respective communities. Accordingly, we apply this concept in the 21st Century ROAD to Housing Act.
Localities will have more flexibility and time to commit funds for local housing projects, while operating under fewer federal constraints.
I believe these are some helpful housing reforms that provide American developers, localities and homebuyers with stronger tools and resources than before.
These tools can be helpful for those looking to create homeownership opportunities in Southwest, Southside and Central Virginia.
Not only will I continue to advocate for housing reforms, but other solutions as well that help bring within reach the American Dream.
If you have questions, concerns, or comments, feel free to contact my office. You can call my Abingdon office at 276-525-1405 or my Christiansburg office at 540-381-5671. To reach my office via email, please visit my website at https://morgangriffith.house.gov/. Also on my website is the latest material from my office, including information on votes recently taken on the floor of the House of Representatives.
