Pew Proposes Solutions to Affordable Housing Crisis – ReadySetLoan
- Neil Caron
- May 19
- 2 min read
America’s affordable housing crisis continues to make headlines, with alarming data pointing to increasing housing costs and decreasing accessibility. Last month, Realtor.com issued failing grades to seven states in its housing affordability report cards, and Zillow reported that nationwide rent prices have outpaced income growth by 6.2% since April 2020. Meanwhile, Zonda found that typical monthly mortgage payments in the U.S. are now 82% higher than two-bedroom rental costs.
This week, The Pew Charitable Trusts released a five-point proposal aimed at addressing these issues through innovative solutions in urban planning, financing, and affordable housing development. ReadySetLoan is here to break down Pew’s key proposals and how they could impact potential homebuyers.
Piggy Points:
Manufactured Home Mortgages: Pew proposes modernizing state laws to allow manufactured homebuyers to access traditional mortgage financing instead of riskier, high-cost loans.
Contract-to-Deed Reform: Pew highlights the need for states to strengthen protections for contract-to-deed buyers, a common financing route for low-cost homes that currently lacks critical consumer safeguards.
Accessory Dwelling Units (ADUs): Pew suggests expanding ADU legislation, noting that 72% of Americans support allowing backyard or garage units to reduce rental costs.
Office-to-Residential Conversions: Transforming vacant office spaces into affordable micro apartments could cut construction costs by up to 35%.
Single-Stair Buildings: Pew recommends single-stair apartment designs to reduce building costs by 6-13% in crowded urban areas.
RSL Perspective:
Neil Caron, Area Manager at CMG Mortgage, explains, "Many of these proposals have the potential to open doors for homeownership that were previously closed. Contract-to-deed reform, for instance, could provide vital protections for buyers in low-cost markets, ensuring they can build equity without the risks typically associated with these contracts."
Neil continues, "By rethinking zoning laws to allow for ADUs and promoting office-to-residential conversions, states could potentially expand affordable housing inventory while revitalizing underused properties."
The ReadySetLoan Approach:
ReadySetLoan remains committed to educating prospective homebuyers about financing options and policy changes that could impact their path to homeownership. If you’re navigating the current market or looking to explore mortgage options, visit ReadySetLoan to connect with experts who can guide you through every step.
For more information on Pew’s proposals and how they could reshape the housing market, visit ReadySetLoan today. Stay informed, stay prepared, and stay ahead with ReadySetLoan.
Comments