The Biden administration and the Treasury Department have announced several initiatives to finance the construction of new housing projects, in response to record high home prices and the highest interest rates in decades.The standout figure from the list of initiatives is a $100 million fund for affordable housing projects over the next three years.According to Zillow, the nation is currently short of 4.5 million housing units. This problem is particularly acute for low-income Americans.
'We face a very significant housing supply shortfall that has been building for a long time and this supply crunch has led to an affordability crunch,' said Yellen.She attributed the surge in home prices over the last four years to this shortage. This has affected both home buyers and renters.The announcement of these initiatives comes just days before the first presidential debate. Inflation and housing prices are expected to be major topics of discussion.