Janet Yellen Unveils $100 Million Initiative to Finance Affordable Housing

Secretary of the Treasury Janet Yellen announced a new $100 million initiative to aid in the financing of affordable housing construction. 

Key Quotes: Speaking in Minneapolis, Minnesota, on Monday, Yellen praised Biden’s economic efforts, calling the economy “strong and resilient, with robust economic growth in recent quarters. The labor market is remarkably healthy, with low unemployment rates, rising real wages, and a bigger share of working-age Americans in the workforce than before the pandemic.” She outlined work done by the Biden administration to address the housing crisis, while also stating, “We face a very significant housing supply shortfall that has been building for a long time. This supply crunch has led to an affordability crunch.” 

For Context: Despite cooling inflation, shelter costs continue to rise at a level deemed to be a crisis by outlets across the spectrum. The Associated Press (Lean Left bias) reported that home prices increased by 46% between March 2020 and March 2024, and that housing costs rose faster than incomes over the past 20 years. Additionally, the outlet reported that there is no county in the country where a full-time minimum wage worker can afford to rent a two-bedroom apartment. 

How the Media Covered It: Outlets across the spectrum emphasized the political implications of the housing crisis, noting that the announcement comes only days before the first presidential debate. The Washington Examiner (Lean Right bias) labeled the new initiative “small-scale” and “relatively marginal,” noting that it “could backfire.”