America needs to ‘build, baby, build’ to fix the housing crisis, Moody’s says

Published On Sep 23, 2024, 3:57 PM

A Moody's economist argues that the U.S. housing crisis is primarily due to a lack of supply rather than high mortgage rates. Despite the Federal Reserve's interest rate cut, the real issue remains the insufficient construction of affordable housing, particularly class B and C units which cater to middle and lower-income earners. The focus has shifted towards constructing more luxury apartments (class A), leading to a significant disparity in available housing types, which exacerbates accessibility issues for a majority of citizens who struggle to afford housing. The call to action is for a broader variety of housing developments across price points to meet the nation's needs.