John Kennedy: This Is How The Federal Government Should Help Build More Housing

Forbes Breaking News

At today's Senate Banking Committee hearing, Sen. John Kennedy (R-LA) discussed ways to spur housing production.

Transcript

00:00Thank you, Mr. Chairman. First, I want to take a point of personal privilege.

00:09Photojournalism is one of the underappreciated aspects of the media. We take it for granted.

00:18One of the Hill's preeminent photojournalists is retiring, I think, Thursday.

00:24Ms. Becky Hamill. We've seen her around here a lot. We've certainly seen her work product, which is extraordinary.

00:37She's a proud graduate in photojournalism from Syracuse.

00:41We hope she'll come back and see us, and I wanted to recognize her fine work and thank her for giving so much to the American people.

00:54Second, Mr. Chairman, Madam Ranking Member, I want to thank you and all the members of this committee for the bipartisanship.

01:11I hope we will all chase Senator Thune, our majority leader, like a dog to the tree line, get him to bring this bill up on the floor.

01:25Senator Warren and I, I want to talk briefly about one provision.

01:29Senator Warren and I have a provision in this bill that would, I think, help generate housing in America.

01:38The most stunning statistic to me is the fact that the median age of a new homeowner, first-time homeowner in America today, is 38.

01:50That's almost 40 before you can afford a home.

01:54It hasn't been that many years ago that the median age was 29.

01:58We've got a problem.

02:00Now, housing is only tangentially a federal issue.

02:05It's really an issue for local government.

02:08Local government decides, for example, how to zone the land within its jurisdiction.

02:19That's good and that's bad, but I respect federalism.

02:23So I don't think we need to be telling our friends in local government how to increase the housing stock.

02:31I do think that we should use our role, which is to provide the money in a way that incents local government to build more houses.

02:44We give $2.3 billion a year in HUD grants to local government for things like housing, sewer, infrastructure, water.

02:55$2.3 billion a year.

02:59Under Senator Warren and I's proposal, if you increase your housing stock over a five-year period, you will get extra money.

03:16Here's the other side of that coin.

03:19If you don't increase your housing stock over a five-year period, more specifically, if you fall below the median point compared to other states,

03:34then you're going to lose 10% of your money.

03:36And we're going to take that 10% of the money from those states that don't reach the median and give it to those states that do.

03:52Before my friends in local government get their bowels in an uproar, we're not telling you how or even if to increase housing.

04:02That's up to you.

04:04I don't want to get in the zoning business.

04:05We are telling you that over a five-year period, you're going to be compared to your peers.

04:12And those of you who surpass your peers are going to get extra money.

04:16Those of you who don't are going to lose the money, and we're going to give it to those states and local governments who do.

04:23I think it will have a big impact.

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