The housing market may look like it's doing well from the outside, with housing activity at record highs and mortgage rates at rock-bottom lows, but underneath it all there are still some problems that need to be fixed. Affordability is a hot issue for both buyers in renters, and the housing market hasn't totally recovered. Lack of inventory is also plaguing the market.
Here are the four things that Redfin's Nela Richardson says the next President would need to do to fix the housing market:
1. Ignore the siren song of mortgage finance reform: Though there’s agreement that the government footprint in housing should be reduced, right now there’s nothing to replace it with. The next president should figure out how to court private capital back into the mortgage market.
2. Connect affordability with mobility: By increasing subsidies to households who need them and helping them move to thriving communities near jobs and functional schools, the next president can help working families make a better life for themselves.
3. Build, baby, build: We need more housing. But we need more transit and infrastructure spending, too, to make sure no neighborhood in America suffers due to isolation and neglect. Political dysfunction in Congress has prevented the federal government from making the infrastructure investment needed in America’s cities.
4. Remember the Rust Belt: Unlike cities along the East and West coasts, time won’t fix these communities, only jobs will. They need our attention and reinvestment in their local economies before homeownership can become a great investment again.