What Does Biden’s Latest Housing Announcement Mean?
The practical impacts of Biden’s recent statement on housing
On May 16th, the Biden administration released a statement outlining plans to help “ease the burden of housing costs over time,” detailing a variety of actions intended to address the current housing supply shortage throughout the US. On the whole, the housing market has not kept up with the demand for homes. Both renters and buyers have seen prices skyrocket in the last few years, while builders have struggled to keep up with demand due to supply chain and labor shortages. These plans are designed to:
Create more affordable housing
Build more homes
If you’re considering building a home in the near future, here’s how these plans impact you.
Financing
When you set out to build a home, the process of financing looks a bit different than buying an existing home. First, you’ll take out a Construction to Permanent loan, which acts a bit differently than a traditional mortgage while you’re in the process of building your home, then converts to a permanent loan once building is complete.
Biden’s latest announcement includes plans to make these loans more accessible to a wider range of financial backgrounds by “exploring the feasibility of Fannie Mae purchase of these loans.” This step in the homebuilding process often creates a barrier, making plans to ease the complicated and costly nature of Construction to Permanent loans particularly impactful.
Supply Chain Challenges
On the builder side of the equation, one factor getting in the way of creating more housing options is the issue of supply chain shortages and challenges. Part of the recently-announced housing plan is to partner directly with the building industry to find out how the federal government can help push housing projects over the finish line and increase housing availability.
Building Techniques
This announcement also announced a goal to finish the most homes since 2006 in 2022, working to alleviate the current gap between supply and demand. One method of doing so is to add permits for constructing and renovating ADUs, or accessory dwelling units, and to add to financing options for single-family housing construction, especially in rural areas.
Along with increasing options for affordable housing and multi-family housing, this plan is largely focused on building more homes overall. If you’ve been waiting for the right time to start building a new single-family home, add an ADU to your property, or restore an old home, these plans will likely help bring those dreams to reality.
When you build a custom home with Atmos, we simplify and streamline each step of the process, from lot selection and floor plan details to financing and more. Get started building your dream home today!
