U.S. Sens. Elizabeth Warren and Raphael Warnock, members of the Senate Committee on Banking, Housing, and Urban Affairs, and Rep. Emanuel Cleaver, Ranking Member of the Housing and Insurance Subcommittee of the House Committee on Financial Services, have reintroduced the American Housing and Economic Mobility Act, legislation to tackle the housing crisis, bring down costs for renters and buyers, and help working families everywhere find a decent place to live at a decent price.
According to an analysis by Moody’s, the bill would build or rehabilitate nearly three million housing units over the next decade, and bring down rents for lower-income and middle-class families by 10%, saving the average family $140 per month. To fully offset the cost of this historic effort, the bill returns the estate tax thresholds to their levels at the end of the George W. Bush administration, institutes more progressive rates above those thresholds, and closes certain loopholes.
“The only way to dig our country out of this housing crisis is to build more housing so everyone has a place to call home,” said Sen. Warren. “My bill will make bold investments in our country’s housing and encourage local innovation to lower housing costs even more—and it’s all paid for by getting America’s wealthiest families to chip in.”
Access to Equitable Housing for All
“Housing means dignity, safety, and security, and as a Senator who grew up in public housing, I know that strengthening housing availability and affordability is critical to helping folks establish a solid foundation to build a healthy future,” said Sen. Warnock. “That is why I am proud to join Sen. Warren and my colleagues in fighting for this transformational legislation that will unleash construction of millions of new homes and create hundreds of thousands of new jobs in the process.”
The American Housing and Economic Mobility Act would:
- Leverage federal funding to build nearly three million new housing units–bringing down rents for lower-income and middle-class families by 10%.
- Provide assistance to people hurt by federal housing policy failures, including through: down payment assistance to first-time, first-generation homebuyers; VA-guaranteed home loan eligibility for descendants of certain veterans; and a grant program for communities with an appraisal gap.
- Create incentives for local governments to eliminate unnecessary land use restrictions that drive up costs.
- Limit the role of private equity in the housing market.
- Hold financial institutions accountable for providing access to credit for all Americans.
- Promote mobility by strengthening anti-discrimination laws and improving the housing voucher program.
- Increase the amount of accessible housing.
“The failure to address our national housing shortage has driven up costs that make homeownership difficult, increased rent burdens in communities across the country, and pushed far too many Americans into homelessness,” said Congressman Cleaver. “Not only does this preclude working class Americans from obtaining safe, stable, and secure housing, but it prevents millions of our fellow citizens, particularly those in minority communities, from climbing the economic ladder and building generational wealth. I’m proud to introduce the American Housing and Economic Mobility Act with Senator Warren, which will spur the construction and rehabilitation of three million units nationwide, help to lower housing costs, and expand economic opportunity to families throughout the United States.”
Nearly 50 non-profit organizations, ranging from unions to housing advocates, have endorsed the bill, including the Leadership Conference on Civil and Human Rights, the National Low Income Housing Coalition, the National Community Reinvestment Coalition, and the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). A coalition of Massachusetts mayors, civil rights groups, the National Rural Housing Coalition, and the Cooperative Credit Union Association submitted letters of support.
Inventory Rises, But Costs Grow Prohibitive
According to a recent study by Redfin, nearly two-thirds (64.7%) of homes on the market in June had been listed for at least 30 days without going under contract. This marks an increase from 59.6% year-over-year, the largest annual rise in a year and the highest share for any June since 2020. June marked the fourth consecutive month in which the proportion of homes lingering on the market for at least a month increased year-over-year. This trend is contributing to a glut of unsold inventory.
“This transformative measure delivers the bold action we need to address the burgeoning housing crisis facing workers and families nationwide,” said Sen. Richard Blumenthal. “We must make major investments in new housing—before sky-high prices make decent homes totally unaffordable for American families. These investments will spur construction, and make both renting and buying homes financially viable. Our American Housing and Economic Mobility Act will help lower prices for renters and buyers with significant investments in home construction and commonsense reforms to rectify decades of housing discrimination.”
Keeping home out of reach for many is the average price tag. Zillow reports that the average U.S. home value is $363,438, up 3.8% over the past year.
“Everyone deserves a chance at the American dream. But our housing crisis is exacerbating an affordability crisis—especially in rural America,” said Sen. Peter Welch. “It’s harder than ever before for folks in Vermont, and across America, to buy a home–or even think about saving enough for a down-payment. This bill will deliver historic federal investments to lower housing costs, create grant programs that support borrowers, and ensure that everyone–in every zip-code–can find a place to live at a fair, affordable price.”
Click here to read the full text of the American Housing and Economic Mobility Act.
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