Yellen announces efforts to boost the housing supply as high prices create a crunch

WASHINGTON — The Biden administration announced new steps to increase access to affordable housing as still-high prices on groceries and other necessities and high interest rates have dramatically pushed up the cost of living in the post-pandemic years. The investments include providing $100 million through a new fund to support affordable housing financing over the next three years, boosting the Federal Financing Bank’s financing of affordable housing and other measures. For low-income Americans, statistics from the National Low Income Housing Coalition show that nationally there is a shortage of more than 7 million affordable homes for the more than 10.8 million extremely low-income U.S. families. Sal Guatieri, a senior economist at BMO Capital Markets Economic Research, wrote Friday that little change is expected in the housing market “until the Fed reduces policy rates.” Diane Yentel, president and CEO of the National Low Income Housing Coalition, said the White House has made efforts to prevent evictions and address the housing crisis, “but there is much more work still to be done.” Yentel said congressional action is needed to “quickly enact transformative and badly needed housing investments. Only through a combination of administrative action and robust federal funding can the country truly resolve its affordable housing crisis.” In her speech, Yellen called on Congress to pass Biden’s proposed budget, released in March.