US Real Estate Supports Biden’s $15,000 Tax Credit
Biden’s housing proposals include a $15,000 first-time homebuyer tax credit and he will focus on fair housing and affordable housing issues. He is also likely to appoint a new head of the Federal Housing Finance Agency.
According to the National Association of Realtors Chief Economist Lawrence Yun $15,000 tax credit is good news since it can go a long way in terms of helping first-time homebuyers and minority households. However, that’s only one part of the solution. The ongoing housing supply shortage is getting worse and not enough homes are being built to face the demand.
“We simply have not been building a sufficient amount of homes,” Yun said. “We also need to address the supply side, how do we bring more supply? It’s going to take some time, but just adding more fuel to the housing demand without addressing the supply would just simply mean that home prices could accelerate much higher and partly negating some of the benefits of the $15,000 tax credit.”
Whether or not a home can be purchased is a pocketbook issue, Yun said, and the homebuyer tax credit will have less impact than if there was a tax credit that is also trying to stimulate more housing construction.