Yesterday, Michael Mitchell, Groundwork Collaborative’s director of policy and research, testified before the House Financial Services Committee at a hearing titled, “Boom and Bust: The Need for Bold Investments in Fair and Affordable Housing to Combat Inflation.”
“Thanks to timely actions taken by the Biden administration and Congress, we have experienced one of the strongest post-recession recoveries on record. However, the recovery is in jeopardy because of the Federal Reserve’s aggressive interest rate hikes,” Mitchell told the Committee. “The Federal Reserve’s actions to combat inflation are driving up rents and exacerbating a housing crisis that threatens the well-being of millions of families across the country.”
“Congress will need to act to ensure that struggling families have access to quality and affordable housing,” Mitchell added.
KEY EXCERPTS FROM MICHAEL MITCHELL’S ORAL TESTIMONY:
“The Federal Reserve’s actions to combat inflation are driving up rents and dampening sorely needed investment in new housing construction.”
“Despite the significant threats that the Federal Reserve’s interest rate hikes pose to the economic security of millions – many of whom are renters – large landlords have seen this moment as an opportunity to raise rents by as much as they possibly can.”
“A recession at this moment would be particularly damaging to marginalized workers – workers of color, women, and workers with disabilities – as discrimination in the labor market means these workers are last to benefit from a strong economy and the first to suffer.”
“The Fed-induced slowdown in the housing market will only exacerbate the 4 million unit deficit in housing that predated this inflationary period.”