Homeownership: The Key to a Brighter Future

A single set of keys can change the way we see the world. Despite their small size, a set of keys has the power to unlock not just doors, but an entire universe of possibilities. Homeownership is the cornerstone upon which countless dreams find their footing. It’s the promise of a yard where laughter echoes, a cozy bed where dreams are nurtured, and the canvas on which the masterpiece of a happy, fulfilling life is painted.

When I first met Nicole, she and her young daughter were living in her parents’ unfinished basement. The shadows of uncertainty loomed large, casting doubt on the possibility of a brighter future. “It wasn’t like an apartment,” Nicole recalls. “I didn’t have a kitchen or anything. It was just a bedroom and a bathroom down there.”

Nicole knew that her living arrangement could not sustain her and her daughter for the long term. She was told to contact Habitat by her daughter’s grandmother, another Habitat homeowner. After contacting the organization, she was given an application, filled out the required paperwork, and was asked to meet with their committee. After being selected for her home, it was simply a matter of putting in the sweat equity to make her dream a reality.

In addition to helping keep the grounds clean during construction, Nicole helped to paint all the doors and the walls in the house. Six years into their homeownership journey, Nicole proudly reflects on her independence. “I would say that the space we have now was definitely necessary. It makes me feel good that I can take care of my daughter on my own.”

The key to homeownership opened more than just their front door – it opened the door to a home where Nicole and her child could thrive. “I’m very appreciative of Habitat,” she says. “I always tell people that I got my house through Habitat. I could not be here without them, that’s for sure, and we’re very grateful for that.”

Closing the Housing Supply Gap

The story of Nicole and her daughter is not unique. Across the country, families are struggling to find affordable housing options that allow them to build a stable, secure future. The White House’s Housing Supply Action Plan aims to address this crisis head-on, with a comprehensive, all-of-government effort to close the housing supply shortfall in five years.

The plan recognizes that the current housing crisis has been years in the making. “Fewer new homes were built in the decade following the Great Recession than in any decade since the 1960s, constraining housing supply and failing to keep pace with demand and household formation,” the White House report states. This mismatch between housing supply and demand has only grown during the pandemic, with Moody’s Analytics estimating a shortfall of more than 15 million homes nationwide.

The impact of this shortage is far-reaching, burdening family budgets, driving up inflation, limiting economic growth, maintaining residential segregation, and exacerbating climate change. “Rising housing costs have burdened families of all incomes with a particular impact on low- and moderate-income families and people and communities of color,” the report notes.

President Biden’s plan aims to address this crisis through a multifaceted approach, including:

Providing Incentives for Land Use and Zoning Reform

One of the most significant issues constraining housing supply and production is the lack of available and affordable land, which is largely driven by state and local zoning and land use laws that limit housing density. The administration is taking immediate steps to address these regulatory barriers, partnering with state and local governments to encourage more inclusive zoning policies.

Piloting New Financing for Housing Production and Preservation

Another barrier to increasing housing supply is a lack of attractive and low-cost financing for new construction and rehabilitation, particularly for smaller-scale projects like single-family homes, 2-4-unit properties, and accessory dwelling units (ADUs). The plan includes new initiatives to expand access to financing, creating more opportunities for affordable housing development.

Improving and Expanding Existing Federal Financing

The administration is also working to make existing federal financing programs more effective and efficient, boosting their impact in increasing housing supply. This includes optimizing the Low-Income Housing Tax Credit (LIHTC) and other initiatives to drive more affordable housing production.

Preserving Affordable Single-Family Homes for Owner-Occupants

In recent years, the share of single-family home purchases by investors has grown significantly, comprising more than 25% of all purchases nationally in some months of 2021. This trend has made it harder for first-time and first-generation homebuyers to access the wealth-building opportunities of homeownership. The plan includes steps to address this challenge and ensure that affordable homes remain available for owner-occupants.

By addressing these key barriers to housing supply, the administration’s plan aims to put the economy on a path to closing the housing supply gap in the next five years. This would mean more affordable rents, more attainable homeownership, and a brighter future for families like Nicole’s across the country.

Unlocking Innovation in Affordable Housing

While the White House’s comprehensive plan is a critical step forward, the affordable housing crisis will require a collaborative, multi-stakeholder effort to truly solve. Organizations like Central Valley Habitat for Humanity are at the forefront of this challenge, unlocking innovation and promoting financial stability to reduce the reliance on temporary support.

Central Valley Habitat for Humanity’s work goes beyond simply building homes. They’re tackling housing insecurity from every angle, providing individuals with affordable homes and older adults with critical home repairs. Their new Helping Hands Club asks for a modest donation of just $20 per month, with every 800 people who join the program enabling the construction of one additional home each year and five more critical home repairs.

“What would you give for a program that eliminates the need for temporary support?” the organization asks. “Would you give us the cost of a cup of coffee? A loaf of bread? A tank of gas?” By harnessing the power of community engagement, Central Valley Habitat for Humanity is creating a sustainable model for affordable housing that empowers families and strengthens neighborhoods.

But the challenge of affordable housing extends beyond the work of any single organization. It’s a systemic issue that requires a diverse coalition of partners – from local governments and community groups to private developers and financial institutions. That’s why organizations like HACC Housing are bringing together these stakeholders, fostering collaboration and unlocking innovative solutions.

HACC Housing’s holistic approach recognizes that affordable housing is not just about bricks and mortar, but about creating communities where families can thrive. By partnering with local governments, they’re able to identify and address regulatory barriers, while working with private developers to pilot new financing models and construction techniques. And by engaging directly with residents, they’re ensuring that affordable housing solutions are tailored to the unique needs of each community.

The path to homeownership may not be easy, but with the right support and innovative thinking, it’s a dream that can become a reality for families across the country. By harnessing the power of collaboration and community engagement, we can unlock the doors to a brighter, more equitable future – one key at a time.