The Graaskamp Center welcomed distinguished presenters and moderators from around Wisconsin and the United States to speak at the 2024 Wisconsin Real Estate & Economic Outlook Conference, Let’s Make Housing Happen: Opening Doors for All on Friday, Oct. 11 at the Fluno Center. The conference featured a keynote presentation by Vincent Reina, Associate Professor at the University of Pennsylvania and former Senior Advisor for Housing and Urban Policy in the White House Domestic Policy Council.
At Penn, Reina’s research focuses on urban economics, low-income housing policy, household mobility, neighborhood change, and community and economic development. He established the Housing Initiative at Penn, collaborating with multiple cities including Philadelphia to develop a direct-to-tenant cash-based housing assistance program.
Reina opened with a discussion of the pressing housing affordability crisis Americans face highlighting that nearly half of all renter households were considered cost-burdened in 2023, spending more than 30% of their income on housing. This issue is particularly severe for low-income families — almost 80% of households in Wisconsin earning under $15,000 annually allocate more than half of their income to rent. Reina pointed out the widening gap between homeownership and affordability in the last five years, citing a significant increase in the price-to-income ratio in metro areas across the country and all regions in Wisconsin.
The speech reflected on the federal government’s response during the pandemic, including measures like COVID-19 forbearance and the Homeowner Assistance Fund. These initiatives provided support and reduced foreclosure rates to historic lows, keeping eviction filings below pre-pandemic levels for 1.5 years after the moratorium ended. But Reina acknowledged that they were only a band-aid on a bigger wound — rents surged by approximately 26% nationally during that period.
Reina highlighted several core contributors to this affordability crisis — a housing supply problem due to underproduction of units, the loss of low-cost rental units, an aging housing stock especially in Wisconsin where the median age of single-family housing stock is 45 compared to the national average of 39, and the adverse impacts of climate change on vulnerable communities.
A multifaceted strategy was proposed to tackle these issues leaving millions of Americans vulnerable due to a lack of systemic renter protections. Reina emphasized the need for reforms in land use and zoning, as well as easing construction and financing costs. He stressed the importance of ensuring a consistent supply of affordable housing through government subsidies, particularly as many older units have historically served as affordable options but are now at risk for leaving the market completely if they do not receive investment.
Drawing from his experiences in the Biden-Harris administration, Reina discussed solutions for affordability issues like the Housing Supply Action Plan, which included incentives for land use reform and improved financing options for manufactured housing. In this presidential administration, the FHA’s highest first-time homebuyer rate is the highest it’s been since at least 2000, Reina said. Additionally, the U.S. saw the completion of nearly 1.5 million housing units in 2023 for the first time since 2007.
Despite these successes, Reina acknowledged the work that is yet to be done. He urged listeners to, as an industry, engage in real discussions that balance codes with supply and affordability, and limit pervasive “destructive narratives” in real estate. He advocated for the allowance of accessory dwelling units, minimum parking requirements, and comparative density.
Addressing this housing crisis that has been developing for more than a decade will require the creation of policies and responses that support effective and equitable housing solutions. Reina stressed the importance of building a system that can facilitate affordable communities for decades to come.
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