- Housing experts are hoping that the next president — whether it's Hillary Clinton or Donald Trump — will be more aggressive in giving the housing industry the growth bump it needs, according to The Hill.
- Critics said the Obama administration focused on putting an end to risky lending practices and protecting consumers, when what was also needed to enable a full recovery were streamlined regulations and mortgage (Fannie Mae and Freddie Mac) reform.
- An improvement in the housing environment is necessary to meet Americans' desire for homeownership, according to The Hill, and housing experts said that the new president should focus on incentivizing builders to develop entry-level housing and streamlining both the mortgage and regulatory processes.
Donald Trump recently spoke before the National Association of Home Builders and promised to put a moratorium on new building regulations, as well as roll back existing burdensome laws. In his speech, Trump referenced an NAHB report that found regulations like building permits, material tariffs and required safety features increase the cost of a home nearly 25%.
In February, the NAHB praised Clinton for her $25 billion housing plan that included down payment help, housing counseling, utilization of credit risk criteria other than credit scores when determining mortgage qualification, increased affordable rental housing and a clarification of mortgage lending rules.
This discussion comes at a time when the country has a homeownership rate of 62.9%, a 51-year low. Lack of affordability is keeping more potential buyers from owning a home, and rising rents, particularly in the bottom-third tier of the rental market, are preventing would-be homeowners from saving for a down payment.
Making it even more difficult is the down payment goal line that is continuously moved because of rising home prices. Add an ever-tightening housing inventory into the mix, and, according to The Wall Street Journal, the country could see the development of a permanent renter class, locking some Americans for good out of homeownership.