The dream of homeownership is slipping away for renters. A record low 13.4% believe they can afford a home, and rental costs are expected to rise 9.7% this year. Higher housing costs and interest rates are making it difficult for renters to transition to home ownership. Renters also expect mortgage rates to continue rising in the next few years.
Governments buy homes in floodplains to help homeowners move to safer areas and reduce future flood damage. FEMA's Hazard Mitigation Grant Program has purchased thousands of homes since 1989, with 75% of funding coming from the federal government. While buyouts can lead to open space and protect other homes, they can also pose challenges for governments in managing the land. Despite the ongoing housing shortage, these programs continue to provide assistance to homeowners affected by flooding.
Housing affordability is a major issue for many Americans. High mortgage rates are only part of the problem, as stagnant wages and strict building regulations also contribute. Restrictive land-use and zoning regulations significantly reduce housing supply, driving up prices. To address the crisis, the administration is providing incentives to expand housing construction, and local governments may need to relax zoning restrictions to allow for more affordable housing options.
