President Joe Biden is proposing the federal government take on an increased role in the housing market. Would his plan help homeowners and prospective home buyers?determined Biden’s plan involves “aggressive federal intervention” to incentivize cities to relax zoning regulations and allow for increased construction of affordable housing.
That hasn’t happened, yet. But a new Biden policy proposal on affordable housing—“what could be an aggressive federal intervention in local politics,” according to The New York Times—threatens to reignite the firestorm.During the pandemic, rock-bottom interest rates and a desire for more space drove a rapid and stunning rise in housing prices. While prices have moderated from their peak, they have not done so nearly enough to make up for the more than doubling of borrowing costs.