Housing Affordability Improves

The National Association of Home Builders reported that housing affordability did improve over the last year due to a drop in mortgage rates. As of the 3rd quarter 27% of buyers report being able to afford half or more of the homes available for sale in their market. This percentage was up from 20% a year ago. Gen Z, Millennials, and Gen X all reported an increase in housing affordability for them; but Boomers reported a drop in affordability for them.

How can we increase housing affordability? Here are some ideas I have-
Reduce the costs of permits and taps to build a new home.
Increase the pace at which new developments can be approved by a city or county. NIMBY-ness probably needs to dwindle or even die.
Increase the supply of new construction workers by training laid off workers from the retail, service, and hospitality sectors. Doing so, would make it much quicker to build new homes and increase the supply of new homes thus making homes more affordable. Plus, a majority of these re-trained workers will have higher incomes and be better able to afford the American Dream of homeownership.
Increase the use of modular construction of new homes. This can be just modular wall panels to complete modular constructed homes. We need to work at making this an "accepted" option in our real estate market and not a looked down-upon housing option.
Will need to increase density of new homes; but will homes with say 3,000 square foot lots sell in light of COVID?
Buyers need to lower their standards on the finishes in their new homes. For example, do you really NEED granite, hardwoods, and other expensive upgrades?