Americans point the finger at the private sector but new polling found they want Congress to do more on the affordable housing front. Researchers said solutions are not gaining enough traction for buyers in Pennsylvania and elsewhere.

In a new national survey from Clever Real Estate, 33% of respondents blamed mortgage lenders and banks for the affordable housing crisis, with equal blame for builders and developers. Around 78% want the next Congress to prioritize the issue.

Julia Gordon, senior fellow at the Center for Affordable Housing Lending, speaking at a panel discussion on the lack of starter homes, suggested the status quo shows no signs of being disrupted.

Image

"It is not likely that the private market and private builders all on their own are going to want to serve the population that's looking for starter homes. It is not as lucrative," Gordon acknowledged.

She stressed it is not just too few starter homes being built. Homeowners in such dwellings are staying put longer and buyers are competing with investors. The center and affiliated organizations have recommended additional incentives for developers to build more starter homes and to spur repairs of existing homes. Congress recently adopted reforms by passing a landmark bill but they will not take effect until federal agencies act on directives and lawmakers provide additional funding.

Gordon argued local governments need motivation to expand allowable home types with moves like reducing minimum lot sizes.

"We like to build freestanding single-family homes on large lots but those types of homes tend to be our most unaffordable types," Gordon pointed out.

She noted small multifamily buildings with two to four units, housing cooperatives, manufactured homes and modular homes should be part of the mix, in addition to smaller stand-alone houses.

In the October poll, 63% of respondents said they do not think the midterm elections will have a positive effect on the housing market, despite it being a top-of-mind issue among voters.