Money is Policy JRT Housing-Money 4-26lores | Page 17

The current system of housing subsidies,
delivered through the federal tax code and
the Congressional appropriations process,
inadequately helps those who need assis-
tance the most: the millions of families who
are struggling on the margins.
the coming years, new household formation
by tens of millions of Millennials along with
the increasing diversity and aging of the U.S.
population will put additional strains on a
housing system that is already failing to meet
the needs of the American people.
A new national housing policy is desperately
needed, one that more directly and effec-
tively responds to the crisis at hand. The
stakes could not be higher: Access to stable
and affordable housing is the foundation for
upward economic mobility and essential to
America’s future prosperity.
Excessive rent burdens are crushing the
aspirations of families across America. More
than 11 million now spend in excess of 50
percent of their income just on rent. A severe
shortage of rental homes affordable to the
lowest-income families is the driving force
behind these burdens. The national home-
ownership rate has also declined significantly
– the result of wage stagnation, regulatory
policies that encourage stricter mortgage
underwriting, student loan debt, and high
rents that make it difficult to accumulate
funds for a downpayment. Today, millions
of creditworthy families seeking to pur-
chase a home for the first time are unable
to realize their dream of homeownership. In
Conclusion
Money is Policy: How Federal Housing Dollars Are Spent
17