US treasury launches $100 million fund for affordable housing amid rising home prices

Posted on July 1, 2024   |  

The Biden administration is taking action to increase access to affordable housing as living costs, including groceries and interest rates, remain high.

The Treasury Secretary will allocate $100 million over the next three years to support affordable housing financing and boost the Federal Financing Bank’s efforts.

Rising home prices have become a key issue in this year's election campaign, highlighting the need for affordable housing.

Both homebuyers and renters are facing higher housing costs, with home prices increasing by 46% from March 2020 to March 2024.

Housing costs have been rising faster than incomes for the past two decades, contributing to the affordability crisis.

Sales of previously owned U.S. homes fell for the third straight month in May, as high mortgage rates and prices discouraged buyers.

The National Low Income Housing Coalition reports a shortage of over 7 million affordable homes for 10.8 million low-income families, with no state or county offering a two-bedroom apartment affordable on a full-time minimum wage salary.