Axios Live: Bipartisan momentum builds to tackle the national housing shortage

WASHINGTON — Capitol Hill lawmakers are working across the aisle to cut through red tape and build more homes, though a compromise over rules on certain rentals is a sticking point, speakers said at an Axios event.

Why it matters: With an estimated shortage of 4.7 million U.S. homes, leaders from both parties are moving on the overall goal of supply, even as they work through negotiations on the fine print of a federal housing bill.

Axios chief economic correspondent Neil Irwin and Axios Local D.C. reporter Cuneyt Dil moderated discussions with Rep. Ritchie Torres (D-N.Y.), Rep. Mike Flood (R-Neb.) and Washington Housing Conservancy CEO Kimberly Driggins. The May 21 event was sponsored by Zillow.

What they're saying: "Housing is having a moment in Washington, D.C., and it's more than a moment, it's a movement," Torres said, citing the major housing package that passed the House 396-13 on May 20.

• "The American zeitgeist is moving decisively in the direction of housing abundance."

Between the lines: The bill's future remains uncertain because of a Senate rule requiring corporate developers to liquidate single-family rental portfolios within seven years.

• "The seven-year rule makes build-to-rent housing unfinanceable and therefore unbuildable and reduces housing supply," Torres said.
• "We worked with [Rep.] Maxine Waters [D-Calif.], worked with the White House to make those surgical changes," Flood said. He added that compromises meant "we didn't get everything we wanted, [but] I think we're on a good path now."

Affordability concerns, lack of infrastructure, red tape and geographic isolation block housing access across markets, the panelists said.

• "In rural America, infrastructure is the No. 1 impediment to housing availability," Flood said, explaining that smaller towns lack the water and sewer lines needed to build starter homes.
• "In New York City, it takes on average 200 days just to rent out an affordable housing unit that has already been constructed," Torres said.

• "Affordable housing is not just a unit," Driggins said. "It's really about the location. It's really about the connection, it's really about the opportunity that a home provides."

By the numbers: Credit scoring is outdated and makes it harder for younger Americans to buy a home, according to Torres.

• He wants a federal requirement that agencies include rental payment history to boost those who pay on time but carry no other debt. "Without a credit score, you have no access to credit," Torres said.

Content from the sponsor's segment:

In a View from the Top conversation, Zillow senior vice president and general manager Zuhairah Washington discussed how data and technology can help buyers navigate a tough market.

• "A key pillar of what we look to do is what we call turn on the lights and build transparency, and making sure that everyone has access to information they need to make homeownership a reality."