In New York, people seeking new homes have found themselves stymied by a lack of affordable housing. With inventory shortages across the state and demand for housing as high as ever, even lower priced properties find their prices rising. The problem has become so severe, both in New York and across the country, that the National Association of Realtors (NAR) has asked the Department of Housing and Urban Development (HUD) to step in.
New York’s affordable housing problem is the result of several concurrent factors all driving the price of housing up. First, there is a major inventory shortage in New York; in other words, there simply aren’t enough houses for people who want to buy them. Second, millennials have begun to enter the market, looking for their first homes, and competing with house buyers that were already in the market. Third, low interest rates have made mortgages relatively appealing, despite the high price of housing. And while this is all great for homeowners who want to see their property values go up, it means that many lower-income home seekers are being choked out of the market.
The NAR has proposed a number of possible policies that could be undertaken by HUD to deal with the issue of affordable housing. Among these are a proposal to refocus Fannie Mae and Freddy Mac, the two major government-backed mortgage lenders, on improving liquidity for low- and mid-income home buyers. They have also asked for “YIMBY” (Yes in My Back Yard) initiatives that would encourage high-density housing and other land use reforms. They also recommend increasing funding for the Low-Income Household Tax Credit (LIHTC) to make it easier for people with less income to afford the higher-priced houses. However, even if these and other recommendations were adopted immediately, it would likely not begin to affect the current market for some time.
In this kind of market, it’s important to have an agent to help you find a house that meets your needs. Charles Rutenberg Realty is one of New York’s largest Real Estate companies with multiple offices providing a full suite of real estate services, including residential and commercial sales or leasing. We serve clients in Nassau, Suffolk, Queens, Kings, Bronx, Westchester, Putnam, and Orange Counties, and bring our knowledge and experience to bear in every transaction. If you are interested in buying, selling, or leasing real estate, give us a call at 516-575-7500 or visit our contact page.
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