Redfin CEO: New housing affordability policy is mostly bandaids for housing issues

Summary

Glenn Kelman, CEO of Redfin, discusses the administration's push to lower housing costs. He argues that policies targeting mortgage rates or institutional investor ownership are mostly bandaids because the U.S. has a structural shortage of about 5 million homes. He calls for zoning reform and more homebuilding, and says home prices need to fall or at least appreciate slower than wages for the market to heal.

• Kelman says housing affordability policies are mostly bandaids.
• He cites a 5 million unit housing shortage due to insufficient construction.
• He advocates zoning deregulation and tying federal funding to zoning reform.
• He argues mortgage rates are set by markets, so government intervention is temporary.
• He says limiting institutional investors would not solve the underlying supply problem.
• He notes home prices have kept rising despite lower sales volume.
• He says home prices need to come down or appreciate slower than wages.