Flood: The Housing Affordability Challenge Affects Everyone
Washington,
March 4, 2025 -
Today, the House Financial Services Committee is holding a Housing and Insurance Subcommittee hearing, led by Subcommittee Chair Mike Flood (NE-01), to examine the factors and policies that have led to the lack of housing supply in America.
Read Subcommittee Chair Flood’s opening remarks as prepared for delivery:
"I am pleased to call to order the first Housing and Insurance Subcommittee hearing of the 119th Congress.
"Before discussing the subject of this hearing, I’d like welcome my friends on both sides of the aisle to this important subcommittee. The jurisdiction of Housing and Insurance touches every single congressional district, and I look forward to working with each of you on the issues that most affect your constituents.
"I am a straight shooter. I don’t hide the ball, and I will do my best to be fair to everyone on this subcommittee, regardless of political affiliation.
"With that, let me pivot to an introduction of today’s hearing. The issue we’re exploring today is one that touches the lives of every single American—both in towering cities on the coasts and in rural communities in the middle of the country—the cost of housing.
"According to the National Association of Realtors, the median annual existing home price in 2024 was up 69 percent relative to 1995, and that’s adjusted for inflation.
"This housing affordability challenge affects everyone. Young people saving up to buy their first home are renting for longer, middle class workers are struggling to make the rent and Americans today feel less secure about their financial future because their bills are going up.
"When it comes to housing affordability, I hope this hearing will help contextualize this problem and give Members of our subcommittee an opportunity to explore root causes. Let’s start with a few things we can rule out:
"The problem is not that people aren’t making enough money—wages are up over the last several years.
"The problem is not that people aren’t saving enough money—savings exploded during the COVID-19 pandemic and have only recently trended back downwards.
"It’s also not that the government doesn’t spend enough money on federal programs. We are coming off a period with historic levels of government spending.
"The reason for high housing costs is simple: we are not building enough homes in this country to meet the demand. Some estimates put the gap between housing supply and demand at around 3.85 million units nationwide. Some put it even higher at more than 5 million units.
"The root of that housing supply problem is a little trickier to pin down to just one cause.
"Regulatory barriers at the state and local level—like zoning and land use policies—play a large role in making it more difficult to create more housing in places that need it.
"Another driver is the actual cost of materials and cost of labor used to build a home.
"For projects that use federal dollars, either through Low Income Housing Tax Credits, or funds from a federal program like the HOME Investment Partnership, those dollars aren’t free—they come with regulatory requirements at the federal level that can make it more challenging to actually give taxpayers the best bang for their buck.
"And finally, we can explore whether there are any challenges related to the financing side that keeps projects from getting off the ground.
"I am excited to dig deeper into each of these issues today, and I look forward to our witnesses’ testimony. "
