The Week Ahead: Looking to UK for Affordable Housing Model

The House Financial Services Housing and Insurance Subcommittee will hold a hearing on Thursday, May 12, at 10 a.m. EST titled “The Future of Housing in America: A Comparison of the United Kingdom and United States Models for Affordable Housing.” The hearing is one in a series on held by the Subcommittee on affordable and rental programs 50 years after the creation of HUD.

Subcommittee members and witness will compare affordable housing models of both the U.S. and United Kingdom, since both countries have faced similar problems when it comes to affordable housing—significant administrative costs while trying to provide it. Both countries have experienced a need to implement innovative practices when it comes to providing affordable housing. Subcommittee members and witnesses will assess how the United Kingdom addressed their affordable housing needs to see if American policymakers can glean any insight.

A live feed of the hearing will be available on the House Committee’s website.

The Subcommittee’s last hearing in the series, which took place in March, was titled “The Future of Housing in America: Government Regulations and the High Cost of Housing,” Subcommittee Chairman Blaine Luetkemeyer (R-Missouri) said that “Government has inserted itself into the business of housing by mandating affordable housing and community reinvestment while simultaneously stifling creation of affordable housing and community reinvestment. It’s time to promote the development and availability of housing for low- to mid-income Americans, not restrict it. So today we ask ourselves: where do people go when they reach self-sufficiency? Is the stock of affordable market-rate housing plentiful enough to support the people seeking it? The unfortunate answer is no.”

In that hearing, the Subcommittee determined that housing demands in the American housing market have changed since the financial crisis in 2008, and that federal housing regulations are “too antiquated” to address future consumers’ housing needs. The Subcommittee further stated it believes that regulatory barriers are inhibiting the development and preservation of rental housing—and affecting the cost of building and maintaining affordable housing.

Quicken Loans Home Price Perception Index—Tuesday, May 10

History has shown that homeowners typically value their homes at a higher price point than appraisers, and as the housing market evolved, these opinions were beginning to inch closer to reaching a point of equilibrium but that has since changed. Will appraiser and homeowners find common ground this week?

According to the most recent Home Price Perception Index (HPPI) by Quicken Loans, on a national level, the Index revealed that in March, home values as determined by appraisers were actually 2.17 percent lower than what homeowners expected. That’s a wider gap than in February, when appraised value was just 1.99 lower than the homeowner’s expectation.

“The varying HPPI values across the country illustrates the importance of examining the market at the local level,” said Bob Walters, Chief Economist for Quicken Loans. “If homeowners are eyeing that new home being built across town, they could be pleasantly surprised how much their home will sell for—or in some instances their equity may not take them as far as they think—depending on what area of the country they’re in.”

Monday, May 9, 2016

Charles Evans Speaks, 5:10 a.m. EST
Chicago Federal Reserve Bank President Charles Evans participates in panel at the International Financial Services Forum in London.

Tuesday, May 10, 2016

Quicken Loans' Home Price Perception Index

Neel Kashkari Speaks, 1 p.m. EST
Minneapolis Federal Reserve Bank President Neel Kashkari will give a speech to the Economic Club of Minnesota.

Wednesday, May 11, 2016

MBA Mortgage Applications, 7 a.m. EST

Thursday, May 12, 2016

House Financial Services Housing and Insurance Subcommittee hearing, “The Future of Housing in America: A Comparison of the United Kingdom and United States Models for Affordable Housing,” 10 a.m. EST

Loretta Mester Speaks, 11:00 a.m.. EST
Cleveland Federal Reserve Bank President Loretta Mester will speak on monetary policy in Reichenau Island, Germany.

Eric Rosengren Speaks, 11:45 a.m. EST
Boston Federal Reserve Bank President Eric Rosengren will speak in Concord, New Hampshire.

Esther George Speaks. 2:15 p.m. EST
Kansas City Federal Reserve Bank President Esther George will deliver a speech on the economy, in Albuquerque, New Mexico.

Friday, May 13, 2016

John Williams Speaks, 6:45 p.m. EST
San Francisco Federal Reserve Bank President John Williams will give a speech on the economy in Sacramento.