Biden seeks to ease housing shortage with $5 billion 'carrot, no stick' approach

By Reuters8 days ago

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Reuters. FILE PHOTO: President Biden speaks about jobs and the economy from the White House in Washington

By Andy Sullivan and Jarrett Renshaw

WASHINGTON (Reuters) - President Joe Biden is seeking to ease a national affordable housing shortage by pushing local governments to allow apartment buildings in neighborhoods that are currently restricted to single-family homes.

The $5 billion plan could inject the White House into a debate pitting older homeowners against younger workers seeking to gain a foothold in the most expensive U.S. cities, where many families spend a third or more of their income on housing.

The proposal, which would provide financial incentives to local governments that change zoning laws restricting many neighborhoods to single-family homes, is an example of the sort of broad social policy changes Democrats are including in Biden's $2 trillion infrastructure bill.

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