Gossip
The strategy, which expands on ideas that President Joe Biden has already declared, guarantees:
- Up to $25,000 in down-payment support for first-time homebuyers.
- To provide a $10,000 tax credit for first-time homebuyers.
- Tax incentives for builders that build starter homes sold to first-time buyers.
- An expansion of a tax incentive for building affordable rental housing.
- A new $40 billion innovation fund to spur innovative housing construction.
- To repurpose some federal land for affordable housing.
- A ban on algorithm-driven price-setting tools for landlords to set rents.
- To remove tax benefits for investors who buy large numbers of single-family rental homes.
Several economists concurred that bringing additional properties to the market through incentives would undoubtedly be beneficial. The supply of houses will rise, which will lead to a decrease in pricing. However, there remained doubt about rent caps.
Joe Brusuelas, principal and chief economist at RSM US, stated, “What I’ve seen is three parts substance and one part symbolism. The substance is increasing or focusing on supply conditions via the financial channel.” It’s a well-thought-out proposal that looks forward and is genuinely doable. The symbolism is more structured around rent price ceilings.
djfly
