The National Association of Home Builders (NAHB) has unveiled a plan to address shelter inflation and ease the affordable housing crisis.
“The lack of homes is the primary cause of growing housing affordability challenges,” said NAHB chairman Carl Harris, a custom home builder from Wichita, Kansas. “Any policy that seeks to improve affordability without addressing the need to increase the supply of single-family and multifamily for-sale and for-rent housing is doomed to fail.”
Shelter inflation—rent and homeownership costs—is still rising well above a 5% rate, and for the past year, more than half of overall inflation in the economy has been due to rising housing costs. The only way to effectively tame shelter inflation, particularly with elevated interest rates for both mortgages and development/construction loans, is to build more attainable, affordable housing, according to the organization.
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