"Bring Those Rents Down": During SOTU, Biden Announces Plan to Lower Housing Costs
In last night's State of the Union address, President Biden announced a plan to lower housing costs for working families and address the large shortage of affordable homes that has been growing for more than a decade.
The president called on Congress to pass legislation to:
- Provide a $10,000 tax credit for first-time homebuyers and people who sell their starter homes
- Build and renovate more than 2 million homes
- Lower rental costs
President Biden also announced new steps to:
- Lower homebuying and refinancing closing costs
- Crack down on corporate actions that rip off renters
We are starting to see some progress. More housing units are under construction right now than at any time in the last 50 years, rents have fallen over the last year in many places, and the homeownership rate is higher now than before the pandemic. But rent is still too high, and Americans who want to buy a home still have difficulty finding one they can afford. That is why President Biden has a landmark plan to build over 2 million homes, which will lower rents, make houses more affordable, and promote fair housing.
Read the full White House plan.
Below is an excerpt of President Biden's State of the Union. Click to watch the full address.
"I know the cost of housing is so important to you. If inflation keeps coming down mortgage rates will come down as well. But I’m not waiting.
I want to provide an annual tax credit that will give Americans $400 a month for the next two years as mortgage rates come down to put toward their mortgage when they buy a first home or trade up for a little more space. My Administration is also eliminating title insurance fees for federally backed mortgages. When you refinance your home this can save you $1,000 or more.
For millions of renters, we’re cracking down on big landlords who break antitrust laws by price-fixing and driving up rents.
I’ve cut red tape so more builders can get federal financing, which is already helping build a record 1.7 million housing units nationwide.
Now pass my plan to build and renovate 2 million affordable homes and bring those rents down!"