Tom Barkin

Housing Affordability Depends on Building More, Not Cheaper Mortgages

Richmond Fed president Tom Barkin argues that housing affordability depends less on cheaper mortgages than on making homes easier and less costly to build, through changes to land use, permitting, redevelopment and local attitudes toward construction. In a discussion with Steven Davis at Jackson Hole, Barkin also describes a labor market with low layoffs but weak hiring, and says uncertainty over long-term real interest rates leaves fiscal policy with less reason to assume borrowing will remain cheap.