Biden Proposes Housing Tax Credits Amid Affordability Crisis, Supply Shortages

Biden proposed new tax credits for homebuyers and sellers to improve housing affordability, but critics say it could increase prices
There is a major housing supply shortage with estimates ranging from 1.5 million to 7 million homes needed
Mortgage rates have surged to over 6%, more than double pre-pandemic levels, making homes less affordable
Rent prices have spiked 30% higher compared to before the pandemic and home prices are over 40% higher
The Fed says interest rate hikes only address demand, not the underlying housing supply shortage that will continue causing price increases