The NewsWorthy: Special Edition

Housing in Crisis? Costs, Challenges, & Changes Ahead

Host: Erica Mandy | Guests: Dr. Darrell Fairweather (Redfin), Andy Winkler (Bipartisan Policy Center)
Date: September 6, 2025

Episode Overview

In this special Saturday edition, host Erica Mandy dives fast and fair into the state of America's housing market. With high prices, steep mortgage rates, and limited inventory leaving many Americans sidelined, Mandy asks: Is the nation facing a true housing crisis? Guest experts Dr. Darrell Fairweather and Andy Winkler break down the data, the challenges facing renters and buyers, and whether major bipartisan legislation could reshape housing for the better.

Key Discussion Points & Insights

The Deep Freeze in the Housing Market (00:00–09:39)

Market Overview

• Darrell Fairweather describes the current housing market as a “deep freeze,” explaining:

  “People are just having a hard time affording a home at these high prices and high mortgage rates. At the same time, home sellers aren’t all that eager to sell or to lower their prices because they still have really low mortgage payments that they were able to lock in during the pandemic.” (01:17)

• Transaction volume is low, shifting toward a buyer’s market for those who can afford it.

Causes and Characteristics

• Price surges during the pandemic were driven by low (3%) interest rates.
• Now, with rates around 6.5%, monthly payments are substantially higher.
• Many would-be buyers are opting to rent due to unaffordable mortgages:

  “If you’re comparing say a one-bedroom apartment to buying a one-bedroom condo...the rental payment is cheaper than the mortgage payment.” (02:00)

Is It a Crisis?

• Fairweather cautions against calling the current moment a crisis—she sees the long-term housing shortage as the true crisis:

  “The crisis in the housing market really started even before the pandemic, when Freddie Mac estimated that we’re 4 million homes short in terms of the housing supply... Housing is really unaffordable, and that’s been a problem for years and years now.” (02:54)

Demographics Most Affected

• Young and first-time buyers bear the brunt:

  “The age of first-time homebuyers...reached a record high of 38... The share of first-time homebuyers in the market is at a record low.” (03:58)

• Millennials and Gen Z are disproportionately making sacrifices—7 in 10 renters and 4 in 10 homeowners in these generations report significant struggles affording housing. (04:35)

National and Regional Differences

• The Sun Belt and South have seen the most new construction; prices are stabilizing.
• The Midwest remains more affordable, seeing increased demand now.
• Coastal cities mirror the national trend of limited buyers and high prices. (05:40)

Shifts in Preferences

• The move back to offices is reversing some pandemic-era migration patterns; demand is returning to major job centers, particularly in tech hubs like San Jose. (06:40)

Climate Risks

• Despite high risk, many are still buying in climate-vulnerable areas for lifestyle reasons. However, rising insurance and HOA costs may soon become deterrents:

  “Those climate risks…show up as housing costs, they show up as insurance costs or maintenance costs.” (07:41)

Racial Equity Watchpoints

• Upcoming Redfin reports show weakening Black homeownership rates, linked to rising Black unemployment. (08:28)

What to Watch Next

• All eyes are on mortgage rates and Fed policy; a rate drop could unfreeze the market:

  “If rates were to fall, it could definitely switch things up in the housing market. We could see more buyers out there and potentially more sellers...” (08:52)

Legislation in Focus: The Road to Housing Act (12:19–20:39)

Is America in a Housing Affordability Crisis?

• Andy Winkler states:

  “I think I would say we are in a housing affordability crisis. It is severe enough to say that Americans by and large cannot afford housing and are not finding the housing that they need.” (12:19)

Road to Housing Act — Overview (13:45)

• This bipartisan Senate bill is actually a blend of 20+ previously introduced measures targeting all facets of housing policy.
• Key Elements:
  • Incentivizes localities to change zoning/land use
  • Eases financing of manufactured homes
  • Focused on strengthening housing supply

Why Is It Gaining Bipartisan Support?

• Crisis severity and constituent pressure are pushing Congress to act:

  “The severity of the challenges...are creating a sense of urgency. We have homelessness numbers at their highest on record... Members of Congress are like anybody else—they hear and see those concerns.” (13:52)

• Previous lack of federal action adds to the policy momentum.

Why Assemble Multiple Measures Now?

• According to Winkler, individual bills historically lacked “importance enough as standalone pieces”:

  “With how difficult it is to get bipartisan consensus, really the only avenue... is to attach it to something else... This is packaging them together to give them a better opportunity.” (15:03)

Chances of Passing & Timeline

• Unanimous banking committee support signals real momentum.
• But changes won't be overnight; states and cities will need time and tools to tackle the issue locally:

  “This is more about giving... governments the tools they need to be able to really tackle the housing affordability challenge... There isn’t really a national housing market.” (16:25)

Potential Risks & Criticisms

• Winkler distinguishes this bill from past demand-side efforts (like tax credits for first-time buyers) that drove prices up:

  “A lot of the changes are targeting housing supply... By targeting housing supply, I think they’re actually potentially driving down costs with these sorts of investments, not the opposite.” (17:20)

• Environmental concerns are mitigated by focusing development on already urbanized areas. (18:17)

Interaction with Other Legislation

• Winkler notes possible alignment with President Trump's “one big beautiful bill,” especially around streamlining federal programs, yet the administration hasn’t weighed in on this bill specifically. (19:04)
• There’s significant overlap with expansions of the Low-Income Housing Tax Credit.

Final Thoughts

• Winkler encourages comprehensive engagement across all government levels:

  “It’s going to take changes in each of those levels to be able to really expand production of housing.” (19:45)

Notable Quotes & Memorable Moments

• Darrell Fairweather:

  “If you’re able to afford a home, you will have an easier time getting an offer accepted.” (01:42)

• On Rental Affordability:

  “Half of renters pay more than 30% of their income to rent, which means that they are by definition cost-burdened.” (04:53)

• Andy Winkler:

  “It really is sort of the most significant kind of housing legislation… in quite a number of years.” (13:45)

• On the bill’s chance:

  “I’m really optimistic… [The] unanimous support for the bill in the Senate Banking Committee is a really strong showing.” (15:51)

Timeline of Key Segments

| Timestamp | Segment | Speaker | |-----------|----------------------------------------------|---------------------| | 01:13 | Housing market overview | Fairweather | | 02:54 | Defining the true housing crisis | Fairweather | | 03:58 | Young buyers are most affected | Fairweather | | 05:40 | Regional differences explained | Fairweather | | 06:53 | Return to office impacts | Fairweather | | 07:41 | Climate risk in housing choices | Fairweather | | 08:28 | Demographics and Black homeownership | Fairweather | | 08:52 | What to watch next: rates and the Fed | Fairweather | | 12:19 | “We are in a housing affordability crisis” | Winkler | | 13:45 | Road to Housing Act summary | Winkler | | 15:03 | Why now? Why this bill? | Winkler | | 15:51 | Prospects for passage | Winkler | | 16:25 | When will it make a difference? | Winkler | | 17:20 | Potential risks & supply-side focus | Winkler | | 18:17 | Environmental safeguards | Winkler | | 19:04 | Comparison: Presidential priorities | Winkler | | 19:45 | “It takes engagement at every level…” | Winkler |

Conclusion

This episode offers a swift yet comprehensive look at the American housing crunch. Through expert voices and timely policy analysis, listeners get an accessible, nuanced understanding of why buying and renting are such uphill battles—and how legislation in Washington aims to tackle the problem from the supply side. For home-seekers, policymakers, and anyone watching the economy, this episode is a valuable primer on the crisis and potential solutions ahead.