President Biden is looking to boost first-time homebuyer’s with a proposed $15,000 tax credit, per CNBC. The tax credit could be accessed immediately by the buyer, thereby serving as down payment assistance. The National Association of Realtors noted that first-time buyers dipped in 2020, facing stiff competition and high home prices. A robust and immediately accessible credit could boost first-time buyer numbers back to the 40% range.
Additionally, Biden is set to rally behind home construction and lenders with a number of additional industry proposals.
Some policies the administration is considering include:
- $15,000 first-time homebuyer tax credit
- Urging big banks to get back into FHA lending
- Encouraging new construction of both single- and multifamily housing
- Strengthening the Community Reinvestment Act, which is intended to help low- and moderate-income areas
CNBC notes some immediate challenges the Biden administration could face, including the competitive priorities of lending to more low-income and first-time buyers, and then trying to create more affordable housing, while also championing environmental protections.
In order to make housing more affordable, Biden said he will push for more high-density multifamily construction. He could want to ease some of the regulatory burdens on single-family builders. The trouble is, a lot of those regulations are environmental.