WASHINGTON (AP) — The Biden administration announced new steps to increase access to affordable housing as still-high prices on groceries and other necessities and high interest rates have dramatically pushed up the cost of living in the post-pandemic years.
Treasury Secretary Janet Yellen promoted the new investments on Monday during a visit to Minneapolis. The investments include providing $100 million through a new fund to support affordable housing financing over the next three years, boosting the Federal Financing Bank’s financing of affordable housing and other measures.
The increased attention to home prices comes as the housing crunch becomes a growing issue in this year's general election campaign.
“We face a very significant housing supply shortfall that has been building for a long time,” Yellen said in a speech Monday afternoon. “This supply crunch has led to an affordability crunch.”
Yellen said the Democratic administration is “pursuing a broad affordability agenda to address the price pressures that families have been feeling.”
Both homebuyers and renters are facing increasing housing costs that skyrocketed after the pandemic. According to the Case-Shiller 20-City Composite Home Price Index, home prices increased by 46% between March 2020 and March 2024. A new Treasury analysis shows that over the past two decades, housing costs have been rising faster than incomes.
Meanwhile, sales of previously occupied U.S. homes fell in May for the third straight month as rising mortgage rates and record-high prices discouraged many prospective homebuyers during what’s traditionally the housing market’s busiest period of the year.
For low-income Americans, statistics from the National Low Income Housing Coalition show that nationally there is a shortage of more than 7 million affordable homes for the more than 10.8 million extremely low-income U.S. families. And there is no state or county in the country where a renter working full-time at minimum wage can afford a two-bedroom apartment, according to the group.
It is becoming a crisis in some cities. For instance, on Martha's Vineyard in Massachusetts, the cost of housing has become a public safety issue as it becomes difficult to attract and retain correctional officers and 911 dispatchers.
President Biden and presumptive GOP nominee Donald Trump have put forward a variety of proposals on how to make life more affordable for average Americans, from Trump proposing to make tips tax-free for workers and Biden pursuing a plan to cut student loan payments for borrowers. A representative from the Trump campaign did not respond to an Associated Press request for comment.
But increased housing costs have some economists predicting the crunch may not end until the Federal Reserve lowers its key interest rate, which remains at 5.3%.
Sal Guatieri, a senior economist at BMO Capital Markets Economic Research, wrote Friday that little change is expected in the housing market “until the Fed reduces policy rates.”
Diane Yentel, president and CEO of the National Low Income Housing Coalition, said the White House has made efforts to prevent evictions and address the housing crisis, “but there is much more work still to be done.”
Yentel said congressional action is needed to "quickly enact transformative and badly needed housing investments. Only through a combination of administrative action and robust federal funding can the country truly resolve its affordable housing crisis.”
In her speech, Yellen called on Congress to pass Biden's proposed budget, released in March.
The budget calls on Congress to provide a tax credit for first-time homebuyers and includes a plan to build more than 2 million homes. It would expand the Low-Income Housing Tax Credit.
The Biden administration has taken other steps to boost the housing supply, including launching a multi-agency effort to encourage states and cities to convert more empty office buildings into housing units, with billions of federal dollars available to help spur such transitions.
In July 2023, the Department of Housing and Urban Development provided communities with $85 million to reduce barriers to affordable housing, such as zoning restrictions that in some places have become a hurdle to increasing the supply and density of affordable housing.
Follow the AP's coverage of Treasury Secretary Janet Yellen at https://apnews.com/hub/janet-yellen.
FILE - Treasury Secretary Janet Yellen testifies during a Senate Appropriations Subcommittee hearing, June 4, 2024, on Capitol Hill in Washington. The Biden administration is announcing new federal initiatives to increase access to affordable housing as high interest rates and still-high prices on groceries and other necessities have dramatically pushed up the cost of living in the post-pandemic years. Yellen is traveling to Minneapolis on Monday, June 24, 2024, to promote the new investments. (AP Photo/Jacquelyn Martin, File)
FILE - A for sale sign is posted in front of a home in Sacramento, Calif., March 3, 2022. The Biden administration is announcing new federal initiatives to increase access to affordable housing as high interest rates and still-high prices on groceries and other necessities have dramatically pushed up the cost of living in the post-pandemic years. Treasury Secretary Janet Yellen is traveling to Minneapolis on Monday, June 24, 2024, to promote the new investments. (AP Photo/Rich Pedroncelli, File)
ARLINGTON, Texas (AP) — Le’Veon Moss was banged up and bottled up with No. 24 Texas A&M down three points in the fourth quarter of the final scheduled neutral-site game against Arkansas at the home of the Dallas Cowboys.
Three straight carries covering 46 yards triggered the winning drive in yet another victory for the Aggies over the Razorbacks at AT&T Stadium.
Marcel Reed threw for two touchdowns, including the go-ahead 5-yarder to Tre Watson that was set up by Moss, and ran for a score in the 21-17 win Saturday.
“We pound ourselves about finishing in the fourth quarter a lot,” said Moss, who had 110 yards on 12 carries. “That’s just the main focus of finishing the fourth quarter.”
Reed had a hand in two tying scores before halftime — a 58-yard pass to Noah Thomas and his 5-yard TD run — before the Aggies went on to beat the Razorbacks for the 12th time in 13 meetings since joining them in the Southeastern Conference in 2012.
Nine of those victories for Texas A&M (4-1, 2-0 SEC) came at AT&T Stadium against the alma mater of Cowboys owner Jerry Jones.
The series, which started with a 15-year contract the year Jones' retractable roof venue opened in 2009, is set to move to campus sites full-time.
Seven of Texas A&M's 10 victories over Arkansas (3-2, 1-1) since 2014 have been one-score games, with three going to overtime. The Hogs led 17-14 early in the fourth on Kyle Ramsey’s 45-yard field goal.
“Arkansas, Texas A&M in AT&T Stadium, how else would you expect it to go?” Aggies coach Mike Elko said. “All the way down to the stretch, and you needed to make plays in the fourth quarter to win it.”
The Razorbacks scored three plays into the game when Taylen Green threw a 75-yard touchdown pass to Isaac TeSlaa, and Ja’Quinden Jackson's 8-yard run for the Razorbacks' only other touchdown put them up 14-7.
Devin Bale's punt for Arkansas pinned Texas A&M at its 1 with 5:34 left and the Razorbacks trailing by four points. Reed threw 10 yards to Jabre Barber and Moss ran for another 30 to give the Aggies some breathing room before a punt backed up the Razorbacks to their 10.
“He got dinged up a little bit early so we didn’t have him for a good part of the middle of the game,” Elko said of Moss. “We got him healthy and ready to roll when it was time, and he was able to go out there and rip off some really big runs.”
Arkansas converted a fourth-and-1 and moved to the 34 before Nic Scourton hit Green from behind and forced a fumble that was recovered by A&M's Jaydon Hill with 1:30 left. The Aggies ran out the clock.
Arkansas' Jackson was limited to 37 yards on 10 carries after coming in leading the SEC at 118 yards rushing per game.
Green had 279 yards passing but just 12 rushing on 12 carries as the Aggies finished with two sacks and nine tackles for loss.
“I thought their defense was extremely physical,” Arkansas coach Sam Pittman said. “We knew it going in. We thought that was the best part of their football team, and they certainly showed it.”
Reed, who is 3-0 as the starter since Connor Weigman sprained his throwing shoulder, finished 11 of 22 for 163 yards and no turnovers. Weigman was in uniform.
Arkansas: The Razorbacks set up their second TD with Bale's 25-yard run on a fake punt. But they might have tried the trickery with him one time too many. Bale was the holder on a fake field goal and was dropped for a 5-yard loss, leaving the score tied at 14 in the third quarter.
Texas A&M: Since losing to No. 16 Notre Dame in the opener at home, the Aggies are building momentum in the first season under Elko. Both of the SEC victories have been away from College Station, starting with a win at Florida two weeks ago.
Arkansas: hosts No. 5 Tennessee next Saturday.
Texas A&M: hosts No. 11 Missouri next Saturday.
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Texas A&M defensive back Dezz Ricks (10) intercepts a pass intended for Arkansas wide receiver Tyrone Broden (5) during the first half of an NCAA college football game, Saturday, Sept. 28, 2024, in Arlington, Texas. (AP Photo/Julio Cortez)
Texas A&M quarterback Marcel Reed (10) reacts in front of Arkansas defensive back Marquise Robinson (13) after scoring on a touchdown run during the first half of an NCAA college football game, Saturday, Sept. 28, 2024, in Arlington, Texas. (AP Photo/Julio Cortez)
Arkansas quarterback Taylen Green looks to pass against Texas A&M during the first half of an NCAA college football game, Saturday, Sept. 28, 2024, in Arlington, Texas. (AP Photo/Julio Cortez)
Texas A&M defensive lineman Shemar Turner's hand is seen on the face of Arkansas offensive lineman Keyshawn Blackstock while rushing in during the first half of an NCAA college football game, Saturday, Sept. 28, 2024, in Arlington, Texas. (AP Photo/Julio Cortez)
Arkansas punter Devin Bale, right, runs with the ball with Texas A&M defensive back Marcus Ratcliffe in tow while running a fake punt play for a first down during the first half of an NCAA college football game, Saturday, Sept. 28, 2024, in Arlington, Texas. (AP Photo/Julio Cortez)
Texas A&M wide receiver Noah Thomas (3) gestures at Arkansas defensive back Marquise Robinson (13) while scoring on a long touchdown reception during the first half of an NCAA college football game, Saturday, Sept. 28, 2024, in Arlington, Texas. (AP Photo/Julio Cortez)
Texas A&M defensive lineman Shemar Turner, left, and defensive lineman Nic Scourton react after a tackle during the first half of an NCAA college football game against Arkansas, Saturday, Sept. 28, 2024, in Arlington, Texas. (AP Photo/Julio Cortez)
