Deep Dive into Non-QM Products — March 22 Webinar —

Midterms Were Good News for Housing
- by Kirk Willison
kwillison@archmi.com
www.archmi.com
Direct 202-714-8606

Welcome to our end-of-the-year review of the 2022 midterm elections and their impact on housing and homeownership in America.

Here are my takeaways.

1. Affordable Housing Won Big

Democrats kept control of the U.S. Senate.

Republicans gained control of the U.S. House.

But the big winner in the 2022 midterm elections at the local level might be affordable housing. Rarely is housing a hot topic in election season, but in a nation where average rent and mortgage payments are now considered “unaffordable” in 99% of U.S. counties, voters are at a breaking point.

To quote newscaster Howard Beale from the 1976 movie “Network,” voters are “mad as hell and [aren't] going to take it anymore.”

2. Voters Have Housing Answers

The bottom line: In city after city and one state, too, voters approved measures to provide more dollars for adding homes to target homelessness and affordability.

• Colorado passed Proposition 123 to set aside tax revenue for affordable housing by dedicating 0.1% of state income tax revenue for affordable housing programs, including aid to develop more housing and assistance for certain renters and homebuyers. It could help build 170,000 more housing units over the next two decades.
• In Austin, Texas, and Kansas City, Missouri, voters approved $350 million and $50 million bonds, respectively, to help low-income residents with their housing needs.
• Voters in Los Angeles, California, approved one measure to add 5,000 low-income housing units per council district (up to 75,000 citywide) and another to slap a “mansion tax” on homes selling for more than $5 million, with the proceeds dedicated to affordable housing.
• Palm Beach, Florida, Charlotte, North Carolina, Berkeley, California and Baltimore, Maryland were other cities where voters passed housing measures.

3. Expect More of the Same from Congress

More stalemates, that is. Congress wasn't successful in enacting affordable housing legislation or appropriations in the 117th Congress, and we shouldn't expect much that's different over the next two years. No consensus could be reached on such proposals as: