Why a Key Biden Effort to Boost Affordable Housing Has Faced Hurdles
Published On Oct 28, 2024, 12:17 PM
The Biden administration's plan to boost affordable housing through over $35 billion in low-interest loans hasn't materialized effectively, as no loans have been finalized yet. Developers are deterred by high upfront costs and stringent requirements. Resia, a housing developer, found the process too costly despite a potential project that could add 948 affordable units in South Florida.
Stock Forecasts
XHB
Negative
The ongoing struggles of the Biden administration to enact their housing plans may negatively impact the housing sector and related ETFs. Potential slowdowns in housing projects could affect housing developers and investors focused in this sector.
LEN
Negative
As affordable housing remains a critical issue, companies focused on construction and finance for housing might benefit in the long term if regulations ease. However, immediate sentiment is likely bearish.
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