The White House Wants to Help First-Time Homebuyers

By: Anneken Tappe · June 26, 2024 · Reading Time: < 1 minute

Price Problem

Homeownership is a core tenet of the American Dream. But it increasingly remains out of reach, especially for younger generations.

America’s housing affordability crisis isn’t new, but it also doesn’t seem to get better. The U.S. has a structural undersupply of homes, which is keeping housing prices high. And then there’s the Federal Reserve, which raised interest rates to combat high inflation, pushing up mortgage rates in the process.

Owning a home is a key way to build wealth, but the current conditions aren’t making it easy for first-time buyers. Not even 1 in 5 adult Gen Zers or their spouses own a home today, per an analysis by John Burns Research and Consulting, as reported by Axios .

The President’s Plan

The Biden administration is proposing a plan to help reduce the cost of housing, particularly for first-time buyers, some of whom would be eligible for a tax-credit of $5,000 per year for two years .

The administration is also proposing a one-off tax credit of $10,000 to middle-class families that sell their starter homes to another owner occupant in a move to help soften the housing shortage.

Whether the proposal will get through Congress remains to be seen.

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