Comment Detail

Comment

Director Thompson,

With great respect for the complexity of the affordable housing challenge, and as a committed ally for affordable rental homes and first time buyers, I would encourage less legislation and more contribution toward affordable new construction - both by local non-profits and private entities. Supply and demand, and the relevant costs associated with acquiring and maintaining the properties, is the cause of higher rents. In Nashville, my multi-family units property taxes doubled in one year, while materials and equipment costs increased by an average of 40%. Labor costs have also increased. I work hard to provide quality housing at a reasonable price -- but rent controls or other limitations on how I can evict non-paying tenants would make my small business impossible to maintain. We are not big bad landlords, we are small business owners who care about our communities and neighbors. As housing availability goes up, prices will balance out due to supply and demand. We need to work together to solve this need -- not harm the small business providers in order to serve the renters.

Thank you for the opportunity to respond to your Request for Input (RFI) on how the Federal Housing Finance Agency (FHFA), in its oversight of Fannie Mae and Freddie Mac, can best provide affordable housing opportunities for renters. Approximately 40% of the National Association of REALTORS®'s (NAR) 1.5 million members own at least one rental housing unit, playing a vital role in providing safe, quality, and affordable housing in neighborhoods nationwide.

As the FHFA examines ways to improve access to affordable housing, it is critical to acknowledge the most significant driver of housing unaffordability is the limited supply of available housing. According to NAR data, the United States has an underproduction gap of over 5.5 million units – a key underlying reason housing costs have increased. On top of this, inflation has increased the prices of goods and services for all Americans. As housing providers strive to provide affordable housing opportunities in their communities, they also contend with rising mortgage rates and increased costs for supplies, services, and maintenance. When inflation is high, the prices of materials increase. That means it becomes exceedingly more expensive for construction teams to build new homes or renovate existing ones. Ultimately, these high costs spill into the housing market and lift home prices for new builds and existing housing.

As REALTORS®, we are committed to upholding the very specific provisions of our contracts with residents, and we often go above and beyond what is required to ensure residents have safe, quality, and affordable places to live. Rental housing is a deeply complex issue that is unique to every community. Creating additional layers of policies to a space that is already heavily regulated by state and local governments will have severe unintended consequences for renters as housing providers are leaving the market in communities where affordable housing is sorely needed.

Affordable housing is pivotal to creating paths to upward mobility for people across the country. I appreciate your commitment to ensuring we achieve this goal without impeding the creation of much-needed housing supply. Sher Powers