The House of Representatives is working to advance the Department of Housing and Urban Development (HUD) funding bill and will likely vote on the bill this week, while the Senate is still drafting its bill. The House’s FY23 HUD funding bill provides a 17% boost to HUD, representing a major shift in Congress’s spending priorities at a time when rapidly rising housing prices are significantly contributing to the historic inflation the public is grappling with.
In the largest cities, rents have risen by as much as 30%, nearly 38% of rural Americans are cost burdened and 19% are severely cost burdened. People who are ready for homeownership face daunting odds of making that dream a reality. In 2021, home prices increased by 19%, further delaying the purchase of starter homes and forcing those ready for homeownership to continue renting instead.
Housing makes up a major component of our nation’s economy and rising inflation, and in February the Federal Reserve Bank of San Francisco predicted that rent inflation alone could add as much as .5% to the Personal Consumption Expenditures Price index for both 2022 and 2023. Congress must act to reduce the impact that rising housing costs are having on historic inflation and address the nation’s housing affordability crisis, racial homeownership gap, and persistent housing discrimination.
Contact your Representatives and Senators to ensure that HUD funding legislation includes these critical housing priorities: