The importance of housing affordability was highlighted during the 2024 election cycle, showcasing its significance across various demographics in America. As the Trump administration takes office on January 20, prioritizing homeownership within the first 100 days is crucial.
A recent IPX study revealed that a staggering 70% of Americans believe owning a home is out of reach. A 2023 Redfin report indicated that only 16% of homes were deemed affordable for the average American household. Both democrats and republicans have shown support for federal intervention to enhance homeownership accessibility, making it a bipartisan priority for officials in 2025 to address the housing crisis.
To tackle the issue of affordable housing, policymakers must first address the shortage of single-family homes. With a current nationwide deficit of 3.8 million affordable homes, prices for entry-level properties are rising, posing challenges for buyers who struggle to afford larger down payments.
Proposals such as the Neighborhood Homes Investment Act aim to combat the housing shortage by incentivizing the development and renovation of single-family homes in distressed neighborhoods. This legislation, supported by both the House and Senate, offers $20 billion in tax credits over the next decade to stimulate the creation of over 500,000 new homes in blighted areas.
Investing in the refurbishment of existing housing stock and increasing the supply of single-family homes can provide more options for potential buyers and drive down housing costs.
In addition to the housing supply issue, policymakers need to address the influence of private institutional investors on homeownership. These investors are acquiring affordable homes and renting them out at high rates, making it difficult for families to purchase homes affordably. By 2030, it is projected that 40% of homes may be controlled by investors, further limiting homeownership for low- and middle-income individuals.
Institutional buyers often target minority areas, exacerbating the racial wealth gap and destabilizing communities. Supporting nonprofit organizations that work to provide affordable housing options is crucial in leveling the playing field against institutional investors.
Increasing funding for Community Development Financial Institutions (CDFIs) can empower these organizations to create more affordable housing solutions. Passing legislation like the Neighborhood Homes Investment Act and bolstering support for CDFIs are essential steps in bridging the homeownership gap, especially in areas with high concentrations of homes in need of repair.
Closing the racial homeownership gap is vital for empowering Black communities to build intergenerational wealth and ensuring equitable homeownership opportunities for all Americans. Elected officials in 2025 must prioritize legislation that promotes housing affordability, expands housing supply, invests in CDFIs, and addresses the racial disparities in homeownership.
Christopher Tyson is the President of NCST (the National Community Stabilization Trust).
This content does not necessarily reflect the views of HousingWire’s editorial department and its owners.
To reach the editor overseeing this piece: [email protected]