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If you're in a big city like New York or Boston and can't afford to live there, the federal government can help.
That's according to a new report from the Brookings Institution, which says the US needs 3.8 million more homes to keep up with population growth and prevent a housing shortage like the one experienced after the Great Recession.
"The main takeaway from these trends is that the nation has an alarming shortage of housing," Jenny Schuetz, a senior fellow at the think tank, says in her Senate testimony.
"This shortage has hurt housing affordability, both in large, high-opportunity cities such as New York and Boston, as well as in previously affordable places such as Nashville, Tenn.," she adds.
According to the report, between 2020 and 2023, "nominal housing prices increased by 37.5% and rents in professionally managed buildings increased by nearly 24%."
Schuetz says the federal government can help by providing financial incentives for local and state governments to invest in housing, land use, transportation, and other infrastructure.
The Department of Housing and Urban Development, for example, could organize meetings between state and local policymakers to share their experiences on "pro-housing policies."
Click for Schuetz's full testimony.
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