Today, the House Financial Services Committee is convening a hearing of the Housing and Insurance Subcommittee to address the factors contributing to the shortage of housing supply in the United States. The session is chaired by Mike Flood (NE-01), who leads this subcommittee.
In his opening remarks, Chair Flood stated, "I am pleased to call to order the first Housing and Insurance Subcommittee hearing of the 119th Congress." He emphasized the importance of bipartisan cooperation, noting that "the jurisdiction of Housing and Insurance touches every single congressional district."
Flood highlighted that housing costs affect all Americans, whether they reside in major coastal cities or rural areas. Citing data from the National Association of Realtors, he noted that "the median annual existing home price in 2024 was up 69 percent relative to 1995," adjusted for inflation.
The hearing aims to explore various aspects of housing affordability. Flood remarked, "This housing affordability challenge affects everyone," pointing out issues faced by young people renting longer and middle-class workers struggling with rent.
He identified several misconceptions about the root causes of high housing costs: "The problem is not that people aren’t making enough money—wages are up over the last several years," and "savings exploded during the COVID-19 pandemic."
According to Flood, the primary issue is insufficient home construction to meet demand. Estimates suggest a gap between supply and demand ranging from 3.85 million to over 5 million units nationwide.
Regulatory barriers at state and local levels, such as zoning policies, were cited as significant obstacles. Additionally, Flood mentioned challenges related to construction costs and federal funding requirements that complicate taxpayer investments.
Flood concluded by expressing eagerness to delve into these issues further during witness testimonies: "I am excited to dig deeper into each of these issues today."