There are many barriers to housing construction that need to be addressed on the path to a resilient and affordable housing market, from zoning to construction codes to subsidy programs. But the core economic trap, which leaves housing stuck in the depths of the business cycles, needs something else. A national construction financing fund could smooth the investment cycle, and help build millions of homes.
A national housing construction fund could not only reduce the burden of today’s higher rates on housing production, but also create an economic environment where housing production achieves a degree of insulation from the business cycle factors that are not indicative of housing demand, leading to an economy where housing production is smoother and more stable across time.