The White House urged Congress on Thursday to pass housing tax credits included in President Joe Biden’s annual budget request to lower out-of-control shelter costs for households.
Shelter costs accounted for more than half of the increase in core inflation, which factors out volatile energy and food prices, in the December consumer price index, published Thursday by the Department of Labor.
In December, the index saw both month-to-month and year-over-year inflation clocking in above projections. Monthly inflation increased by 0.3%, while yearly inflation rose by 3.4%, compared to estimates of 0.2% and 3.2%, respectively.
National Economic Council Director Lael Brainard briefed reporters on the administration’s response to the latest inflation numbers and conceded that the White House needs help from Congress to address shelter costs more rapidly.
“Rent affordability and housing affordability generally is an area that really is salient for a lot of households as they sit around their kitchen tables paying their bills. Housing is a big one. We are very focused on housing affordability,” Brainard stated in response to a question on the subject. “We’d like to see Congress pass housing tax credits. The president has put them in his budget every year. Those have always been critical for increasing the supply of affordable rentals.”
“We also have put forward proposals for first-generation homebuyers to make that more affordable. Mortgage rates have actually come down over the last few months,” she continued. “But we’re going to continue putting forward proposals and fighting to make housing more affordable, and we hope Republicans in Congress will work with us on that.”
Brainard noted that “there are a lot of forecasters” predicting shelter costs will ease later in the year, especially as yearly leases are renewed, but reiterated that “that’s not enough.”
“We need to take action,” she concluded. “We need Congress to work with us on now.”
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Biden’s latest budget request specifically included a $28 billion expansion across 10 years to the low-income housing tax credit program and the creation of a first-time homebuyer financial assistance program.
You can watch Thursday’s briefing in full below.