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s the US housing crisis worsens, lawmakers are searching for answers. Representative Rashida Tlaib (D-Mich.) brought attention to the issue during a Congressional hearing with Federal Reserve Chair Jerome Powell on June 24. She highlighted that over half of Black women in her district have experienced eviction, citing academic research. This statistic is particularly concerning due to the traumatic impact evictions can have and their effect on equitable housing access.

    A recent report from Harvard University's Joint Center for Housing Studies underscores the nationwide challenges: rising insurance premiums, property taxes, and rents are pushing Americans into homelessness, while high mortgage rates lock first-time buyers out of the market. Tlaib pressed Powell to explain how the Fed's monetary policy contributes to these issues, asking if high interest rates don't exacerbate housing shortages by limiting new construction.

    Powell acknowledged that high rates weigh on housing activity but argued that restoring price stability would ultimately benefit the market. Selma Hepp, chief economist at Cotality, agrees that both perspectives are valid, noting that the US has a long-term housing shortage and that addressing it requires more than just short-term solutions. New construction levels have consistently fallen short since the subprime bubble burst nearly two decades ago, while construction expenses have risen significantly.

    A bipartisan group of lawmakers is pushing for innovative solutions to the crisis, including releasing Fannie Mae and Freddie Mac from government conservatorship and investing in middle-class housing. Hepp commends these efforts, emphasizing that policymakers should focus on finding solutions rather than placing blame.