Washington politician debuts housing affordability bill as average homeowner age spikes

OLYMPIA, Wash. — Homeownership has become increasingly out of reach for many families, and a new bill introduced in Congress aims to make buying - and keeping - a home affordable for future generations.

On Thursday, U.S. Rep. Kim Schrier, M.D., D-Wash., introduced the Permanent Housing Affordability Act, legislation intended to address the housing affordability crisis and increase access to homeownership. Companion legislation was introduced in the U.S. Senate by Sen. Lisa Blunt Rochester, D-Delaware.

“Home ownership has become unaffordable and unattainable for millions of Americans, especially for young people here in Washington State,” Schrier said. “Throughout this district, constituents tell me that, especially at a time when prices for groceries, gas, and healthcare are skyrocketing, they can’t fathom saving enough to purchase a home. This legislation bolsters an important tool in the toolkit to stand against Wall Street interests and help families achieve home ownership.”

The average age for purchasing a first home is now 40, according to the information released with the bill.

Research cited in the announcement says a typical homebuyer in 2024 would need to spend about 45% more of their income on mortgage payments than in 2019.

The release also points to a sharp increase in home purchases by institutional investors — including private equity firms and Wall Street investors — as a significant factor contributing to rising home costs.

“For too many Americans, the idea of owning a home is a pipe dream – unaffordable and out of reach,” Blunt Rochester said. “Through an innovative concept called shared equity ownership, my Permanent Housing Affordability Act will break down barriers to accessible homeownership, putting more families on the path toward generational wealth. "

The legislation would support entities such as nonprofits, states, and local governments that sell homes to qualifying homebuyers at an affordable price.

Under the model described, homeowners agree to a resale formula designed to keep the homes affordable in perpetuity for future buyers. Supporters say the approach allows homeowners to build wealth while preserving affordability for subsequent buyers, keeps public investments tied to the housing unit for generations, and helps keep housing out of the hands of institutional investors by reserving inventory strictly for affordability purposes.