There are many issues that President-elect Trump will have to tackle in the run-up to his inauguration. Nothing is more pressing than affordable housing.
First, mortgage rates have risen sharply in recent years, from less than 3% in 2020.Today it's close to 7%. House prices in the US arerose nearly 50%The past four years have further priced out potential homebuyers who can't even afford the starter homes that were once available. In fact, U.S. home sales have slowed to an all-time high.Lowest pace in about 14 years.
Then there are renters.tens of millions of AmericansThey currently spend more than 30 percent of their income on rent and are considered “rent burdened.”over 12 million AmericansThey spend more than 50 percent of their income on rent, and there is a rent shortage in the U.S.Approximately 7 million affordable rental homes.
Today's house price crisis is unprecedented, and the fact that mainstream discourse has largely ignored this issue is unconscionable. Despite the lack of affordable housing in large parts of the country, President Trump chose (scott turnerfor those keeping track) is mostly backpage news. Why isn't President Trump raising this issue more?overwhelming missionHow to take action?
In a sense, the 2024 presidential candidates sought to provide an answer, to find consensus in an increasingly polarized world. Kamala Harris and Trump (to a lesser extent)advocated new constructionDuring the campaign, Ms. Harris proposed creating 3 million new units of affordable housing, and Mr. Trump called for freeing up more federal land for housing (Harris agreed).
This is just the beginning. Housing is a human right, and President Trump must govern with that fundamental premise in mind. If he ignores affordable housing while in office, it will be a catastrophic failure.
But let's be clear: While new construction is necessary, the affordable housing crisis cannot be solved simply by building from scratch. Local regulations often make efficient and cost-effective construction impossible and impede a development process that is far from streamlined. In cities like Miami and Los Angeles, projects are regularly stalled because residents are in dire need of affordable housing. Approval of qualifications can take years. Even if approved, new construction can take up to 10 years, and that's a big “what if.”
Millions of Americans cannot afford to wait years for a reprieve. The clock is ticking for Trump to do the right thing.
This results in adaptive reuse. But “adaptive reuse” (the creative reuse of historic hotels, commercial spaces, and other old buildings) was never mentioned in the campaign. Despite the seemingly endless inventory of existing buildings that can provide affordable housing (just think about it)wasted office space(in Manhattan), adaptive reuse remains underutilized. There isthousands of unused buildingsAll of America could be populated with low-income residents without considering new construction.
Take advantage of this inventory. Adaptive reuse should be at the top of the Trump administration's list of affordable housing priorities.
One place to start isExpand available tax benefitsFor builders looking to adaptively reuse affordable housing. increaseLow-income housing tax credit Tax breaks for developers should inevitably increase the supply of affordable rentals.
Given the rich potential for adaptive reuse, regulatory reform is also important. According to some predictionsNinety percent of U.S. real estate growth over the next decade is likely to involve adaptive reuse of existing buildings rather than new construction. Cities and towns need to ride this wave and speed up the regulatory approval process.
We have viable role models like Dallas, where our mission to fast-track affordable housing projects is transparent and effective. Working with Dallas city officials (like mine) includes early meetings with regulators before the project is submitted for approval, and the page quickly turns from application to approval. Masu. Direct, real-time communication with the City Manager's office and other organizations is standard operating procedure.
Transparency should remain the status quo everywhere. There is absolutely no reason for cities like Miami or Los Angeles to postpone, postpone, postpone, whether Democratic or Republican.
As Trump 2.0 arrives in Washington, D.C., presidential leadership is needed on affordable housing, including an increased emphasis on adaptive reuse. This also includes:President Trump's official proposal on housingEveryone can see it, but we haven't seen it yet. Where are his plans?
Federal action on housing should not include deep budget cuts to the Department of Housing and Urban Development, which is a leader in housing affordability, as feared. That would send a worrying signal to President Trump.
If we don't do everything we can to make affordable housing a reality, we won't be able to address America's most pressing problems. The ball is in the Trump administration's court.
Margi Glavovic Nothard isgrabovic studiowith offices in Florida and California.
