A $6 billion cut to the Department of Housing and Urban Development budget would lessen the federal government’s role in the housing market, but will also impact programs for affordable housing, job growth, and redevelopment.
Trulia chief economist Ralph McLaughlin notes that the budget cuts could undermine the housing market recovery in communities that are undersupplied by the private sector.
McLaughlin says that as many as 8 million people could lose their public housing.
Cutting such programs could reverse the progress that has been made in reducing racial and housing choice segregation over the past five years. We fear that such cuts could ultimately dampen economic growth by increasing housing stress for working-class Americans who are vital for supporting higher-paying base industries in their respective markets.