U.S. Treasury Grants $250 Million in Affordable Housing

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US Treasury Grant Department is set to award

Nearly $250 million to financial institutions and nonprofits, aiming to create around 30,000 units of affordable housing across the country. Treasury Secretary Janet Yellen announced this US Treasury Grant initiative as housing costs for renters and buyers have surged to record highs, with the median home price hitting $384,400 in mid-October.

This funding, drawn from the US Treasury Grant through the Capital Magnet Fund, was established in 2008 during the Great Recession. The awards are expected to produce over 26,400 affordable rental and homeowner units, enhancing housing supply and affordability through US Treasury Grant support.

The US Treasury Grant initiative will also support economic development by financing community facilities, such as daycare centers and healthcare clinics. Yellen noted that US Treasury Grant funding could leverage nearly $9 billion in additional private and public resources, providing crucial support to communities in need. US Treasury Grant programs have been instrumental in addressing housing shortages, especially in high-demand urban areas.

Since its inception, the Capital Magnet Fund, supported by US Treasury Grant funding, has facilitated the creation of over 63,000 affordable homes, addressing the significant shortfall in the housing market, which is currently estimated to lack 3.8 million homes to meet demand. With continued reliance on US Treasury Grant initiatives, the hope is to sustain and expand these affordable housing projects across the U.S.

Additionally, US Treasury Grant resources are seen as essential to bridging the housing gap, as more communities look to benefit from this infusion of funding. Local governments and nonprofits are expected to collaborate closely with US Treasury Grant recipients to maximize the impact of these housing initiatives.

Through this renewed focus on US Treasury Grant support, the Department aims to further stimulate housing development. By providing US Treasury Grant funding, the initiative emphasizes support for underserved communities, ensuring that housing remains accessible and affordable for all Americans.

The US Treasury Grant program continues to be a key driver in nationwide housing solutions, demonstrating the department’s commitment to addressing the urgent housing needs across diverse regions and income levels.

Source: Link

Most Americans Favor Rent Increase Caps

A recent survey by Redfin revealed that 82% of U.S. residents support caps on rent hikes. This sentiment crosses political lines, with 86% of renters and 78% of homeowners backing the idea. However, Redfin economists caution that while rent control may seem beneficial in the short term, it could worsen housing affordability in the long run.

Chen Zhao, Redfin’s economic research lead, explains that limiting rent increases could deter developers from building new units, exacerbating the existing housing shortage. He emphasizes that the key to making rentals more affordable lies in increasing the supply of housing, rather than imposing caps.

In California, 78% of residents are in favor of rent control, ahead of a significant election proposition that could allow cities to implement stricter limits on rent increases. Current state law caps annual increases at 5% plus inflation, but the proposed changes could give local governments more power to manage rents.

Source: Link

Small Landlords Oppose Big Homebuyers

A recent survey by Flock Homes and ResiClub reveals that mom-and-pop landlords are not keen on institutional homebuyers. Only 14.9% of real estate investors view these large firms favorably, while a significant 54.4% hold an unfavorable opinion of them.

Currently, institutional buyers, defined as those owning at least 1,000 homes, account for about 1% of the U.S. single-family housing stock. Despite their relatively small market share, their presence is felt more in certain areas, like Atlanta and Jacksonville, where they own higher percentages of homes.

Interestingly, opinions are divided among small landlords regarding whether stricter regulations on these corporate giants would help or hurt their businesses. While 54.2% believe such regulations would be beneficial, 45.8% think it could have negative consequences for smaller landlords.

The survey involved 284 investors, most of whom own between 2 and 20 properties. The findings highlight a growing tension in the housing market as institutional investors increasingly enter neighborhoods, sparking concern among smaller landlords about competition and market dynamics.

Source: Link

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