A new report released by Smart Growth America evaluates the federal government's influence on America's real estate sector. With $450 billion in subsidies per year, it's clear "the communities we’ve constructed weren’t built on market demand alone."
Emily Badger discusses the findings of "Federal Involvement in Real Estate," the vital new report released today by Smart Growth America that explores the extent to which the U.S. real estate sector is "heavily influenced by direct and indirect government intervention."
"Smart Growth America’s report counted 50 federal programs that lean on the real estate scales in some way, whether through tax credits like the home mortgage interest deduction, loan guarantees through the Small Business Administration or Federal Housing Administration, or grants for low-income housing," notes Badger. The report did not account for investments by Fannie Mae and Freddie Mac or federally owned real estate. Nor did it assess spending on infrastructure, from highways to water treatment, that have a substantial impact on real estate location and viability.
What's clear in the aggregate is that the United States is unclear in its real estate investment policy: "Some programs seem to have outlived their original intent, while others are now working at cross purposes with today’s market demand." Despite no discernable overall strategy, "it’s clear that the federal government has favored many types of development at the expense of others." For instance, says Badger, "[t]he government dramatically favors homeowners over renters. Its support is heavily skewed toward single-family homes over multi-family developments....The mortgage interest deduction – a program first created in 1913 with the ostensible aim of boosting homeownership – curiously encourages investments in second homes."
Smart Growth America stops short of making qualitative judgements about the programs its report details. But in trying to start a conversation about the federal footprint in real estate, the study's implicit criticism "isn’t that Uncle Sam intervenes, but that he intervenes ineffectively."
"Are we really achieving what we want?" Geoffrey Anderson, the president and CEO of Smart Growth America asks. "And do we even know what we want to achieve?"
FULL STORY: How the Federal Government Dramatically Skews the U.S. Real Estate Market
The Federal Housing Administration's Ongoing, Systematic Obstruction of Density
Scott Beyer writes that despite changes to policies allowing insured mortgages by the Federal Housing Administration's (FHA), the federal government continues to obstruct density by limiting support for condo owners.
Robotaxi Charging Lots Could Complicate San Francisco Housing Development
Multiple sites slated for housing development are now being turned into charging and storage lots for autonomous vehicles, making housing an unintended victim of the robotaxi revolution.
Maui Condo Sales Drop as County Weighs Short-Term Rental Regulations
A proposed county bill would phase out some 7,000 short-term rental units.
Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.
San Francisco's School District Spent $105M To Build Affordable Housing for Teachers — And That's Just the Beginning
SFUSD joins a growing list of school districts using their land holdings to address housing affordability challenges faced by their own employees.
The Tiny, Adorable $7,000 Car Turning Japan Onto EVs
The single seat Mibot charges from a regular plug as quickly as an iPad, and is about half the price of an average EV.
Texas Legislature’s Surprising Pro-Housing Swing
Smaller homes on smaller lots, office to apartment conversions, and 40% less say for NIMBYs, vote state lawmakers.
Even Edmonton Wants Single Staircase Buildings
Canada's second most affordable major city joins those angling to nix the requirement for two staircases in multi-family buildings.
Duffy Threatens to Cut DOT Funds to “Sanctuary Cities”
“Follow the law or forfeit the funding” says US Secretary of Transportation.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Smith Gee Studio
City of Charlotte
City of Camden Redevelopment Agency
City of Astoria
Transportation Research & Education Center (TREC) at Portland State University
City of Camden Redevelopment Agency
Municipality of Princeton (NJ)