President Donald Trump is touting a plan to help make it easier for people to buy homes, but the plan is not likely to help the country’s housing market, a new analysis shows.
The Trump administration’s Housing Affordability and Livability Agenda, a plan the president signed in March, is designed to help spur construction of more affordable homes, as well as make it cheaper for low- and moderate-income households to buy their own.
But a report released Wednesday by real estate analytics firm Zillow shows that the plan will do little to help homeownership, because it will only help those earning less than 30 percent of the federal poverty line get a mortgage.
“The plan is designed primarily for households making up to 300 percent of poverty,” the Zillower report states.
“It is designed for households that are more likely to be first-time buyers, renters, or are families with lower incomes than other households.
It is not intended to help all buyers.”
For example, the plan would only help people making under $30,000, according to the report.
“It’s the biggest mistake the president could have made,” said Paul Tashnick, a Zillows senior vice president.
“The president can’t really say this is a great plan for the middle class and for the poor, it’s designed to give him an incentive to help them get into the middle.
But it’s a pretty bad plan for renters, for first-timers, for families with incomes below 30 percent.”
In the case of those earning between 300 and 400 percent of that poverty line, the housing affordability plan would likely help them, but not the average American.
For example in California, the report found that the Zellow model’s median income for a household with an income of $70,000 would be $36,732, or 30 percent more than the median income of the average California household.
“That means the median household would be paying nearly twice as much in interest on their mortgage as it would if the government subsidized the mortgage interest on those households,” Zillowing CEO Robert J. Zettler said in a statement.
“This is just another example of why housing is the least important issue in this election.”
The report also found that about 6.4 million Americans, or nearly a quarter of the U.S. population, would be able to get a loan to buy a home, up from 5.5 million people in the first quarter of this year.
And those who were already eligible to buy were likely to get better loans and lower down payments than people who didn’t qualify, the Zettlers said.
The president’s plan also doesn’t address the issue of rising rents, which ZillOW predicts would have the largest impact on renters.
The Zellows report also says that the proposal would also boost homeownership rates, but that would not necessarily make up for the cost of buying a home.
The report comes amid signs that the Trump administration has moved to make real estate less affordable.
In March, the Trump Administration released its first rule on real estate lending, requiring that banks that offer loans for real estate purchases to use a lower interest rate.
The move came after the Trump Organization said in December that it was looking at lowering the interest rate it charged on some loans.
The move came amid concerns that the mortgage lending boom was starting to stall, and that many people were finding it harder to afford a home or rent.
The Zellers report also finds that the average rate on new homes purchased by families making under 300 percent poverty would be just $1,813, while the average interest rate for a 30-year mortgage would be more than $2,200.
The housing affordability report also suggests that the housing market could remain strong for a long time.
“We don’t see any reason for concern in the near term,” Zellower said.
“However, if the economy continues to deteriorate, the likelihood of homeownership and rental affordability improving remains high.”