Home construction, banking and legislative leaders urged Congress to advance more reforms that would strengthen the housing market at a D.C. conference at the U.S. Chamber of Commerce.
Karen Purcell, head of Community Development Banking for Commercial Real Estate at JPMorgan Chase, pointed out that middle-class people have been priced out of the market in recent years, with the salary needed for a middle-income home doubling over five years to $124,000. This is a level only the top 30% of wage earners can achieve. Meanwhile, 169 out of 390 U.S. metros do not have enough housing stock at that level.
One of the reforms includes pushing for changes to the Low Income Housing Tax Credit, a tool that helps finance affordable housing development with federal tax breaks. Allowing it to be transferable would encourage more investors to put money behind the credit that developers can use.
