100-Year-Old Bank may ease U.S. housing shortage

An opinion argues that rechartering the Federal Home Loan Bank System, created in 1932, could redirect funding to so-called 'missing middle' multifamily housing and is estimated to spur about 200,000 new homes a year, including roughly 40,000 below-market units.

An opinion article proposes using the Federal Home Loan Bank system to increase housing supply. Congressional leaders are still negotiating the 21st Century Road to Housing Act, a bipartisan effort to lower housing costs by making it easier to build. The piece notes the U.S. is short at least four million homes and that first-time buyers are older than they were a decade ago. It argues the Federal Home Loan Bank System, chartered in 1932, could be rechartered to redirect more support toward mid-size multifamily housing. Key points: - The U.S. faces an estimated shortage of at least four million homes and many renters pay more than 30 percent of their income for housing. - The Federal Home Loan Bank System is a network of 11 regional banks owned cooperatively by about 6,400 members and was created in 1932. - The article reports that only about 10 percent of the system's net income currently goes toward its original housing mission. - The author estimates rechartering the system could make "missing middle" buildings cheaper to build and could spur roughly 200,000 new homes annually, including about 40,000 below-market units. Summary: Rechartering the Federal Home Loan Bank System is presented as a way to redirect funding toward mid-size multifamily or "missing middle" housing, potentially increasing housing construction. Undetermined at this time.