Biden Investing $100M to Spur Housing Construction
The Biden administration announced a $100 million investment to combat barriers to affordable housing construction through a new grant program. The program will provide funding to state and local governments and other entities to develop and implement plans to facilitate affordable housing production.
This funding was made possible by a bipartisan government package, and the administration has prioritized increasing the nation’s housing supply. The second round of the program will target communities with acute affordable housing needs that have already shown a commitment to overcoming local barriers. Housing affordability has emerged as a key issue for voters, especially younger generations, ahead of the upcoming elections. TheHill.
Maryland Housing Market 2024: Trends & House Prices
The Maryland housing market continues to see rising home prices, with prices up 2.5% per quarter on average, despite a slight slowdown in the market. Inventory is declining, and homes are selling quickly, often within a week, driven by steady demand from government workers and military personnel. While some homes are still selling above list price, the state is working to make homeownership more affordable through various assistance programs. Analysts predict the Maryland housing market will remain strong, with low inventory and stable or rising prices, though potential buyers may face affordability challenges. Overall, the Maryland housing market favors sellers, but buyers have options to help offset the impact of high interest rates. Forbes.
An Unexpected Barrier to Affordable Housing
The affordable housing crisis in the nation is well-known, and real estate developers and planners are eager to address the issue. However, one of the main challenges they face is not financing or construction but gaining community support for their projects. According to a survey conducted by coUrbanize, two-thirds of developers and planners stated that their most active projects in the next six months will be building affordable and supportive housing. Despite 94% of respondents attempting to gain community input and support through public meetings, many were frustrated by low attendance and lack of productivity. The greatest barrier to engagement, as identified by 60% of respondents, was the lack of staff time. Globest.
Renting Now Beats Buying in All Major US Cities
The latest Realtor.com Rental Report reveals that renting a starter home has become more financially advantageous than buying in all 50 largest metropolitan areas in the United States, driven by elevated mortgage rates, high home prices, and a decline in rents. On average, renting a starter home is $1,067 per month, less expensive than buying, with cities like Austin, Texas, Seattle, Los Angeles, San Francisco, and New York seeing the most significant savings for renters. While renting remains more economical overall, the advantage is beginning to diminish in some areas as home prices and affordability improve, but certain markets like Memphis and Birmingham have become more rent-favoring due to increased investor activity. Globest.
Carroll County Continues Efforts for Job Creation, with $150,000 Allocated
Carroll County’s unemployment rate is currently at a low of 2.7%, but officials are still working to attract new businesses and create more jobs for its residents. The Board of Carroll County Commissioners recently approved the allocation of $150,000 toward business expansion and new job creation. Denise Beaver, the director of the county’s Department of Economic Development, commented on the funding, indicating that the county is committed to ongoing efforts to support economic growth and job opportunities. This initiative reflects the county’s proactive approach to maintaining a thriving local economy and providing employment options for its community. TheBaltimoreSun.
Bipartisan Bills Recently Introduced in Congress Would Turn Distressed and Vacant Commercial Real Estate into Affordable Housing
Bipartisan bills in Congress would create a federal tax credit to convert underused commercial properties into affordable housing, addressing vacant spaces and the housing crisis. The $15 billion program would cover up to 20% of conversion costs, with extra incentives for economically distressed areas. The credit is designed to work with existing affordable and historic tax credits to make conversions viable. While the bill has broad support, historic tax credit stakeholders have some concerns. The legislation is unlikely to pass this year but has a good chance in 2025. Novogradac.