#USHouseMarketStructureDraft Here’s a structured overview of potential reforms or legislative drafts related to the **U.S. Housing Market**, including key proposals, stakeholders, and debates shaping policy discussions. This draft framework reflects ongoing debates in Congress and regulatory agencies about addressing affordability, supply shortages, and systemic risks in the housing sector:

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### **Current U.S. Housing Market Structure**

1. **Key Players**:

- **Federal Agencies**: HUD (Housing and Urban Development), FHFA (Federal Housing Finance Agency), Fannie Mae/Freddie Mac (GSEs).

- **Lenders**: Banks, credit unions, non-bank mortgage originators.

- **Regulators**: CFPB (Consumer Financial Protection Bureau), Federal Reserve.

- **Market**: Homebuilders, real estate investors, renters, homeowners.

2. **Core Challenges**:

- **Affordability Crisis**: Median home prices up **45% since 2019**, outpacing wage growth.

- **Supply Shortage**: U.S. faces a deficit of **3.8 million homes** (NAR estimate).

- **Rising Costs**: Mortgage rates near **7%** (2024), insurance premiums, and property taxes.

- **Inequities**: Racial disparities in homeownership rates (e.g., ~75% White vs. ~45% Black ownership).

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### **Proposed Reforms in Legislative Drafts**

**1. GSE (Fannie/Freddie) Reform**:

- **Privatization vs. Public Utility**: Debates over ending federal conservatorship of Fannie/Freddie (in place since 2008) and restructuring their role.

- **Risk Sharing**: Require private capital to absorb more mortgage-default risk.

- **Affordable Housing Mandates**: Expand GSEs’ funding for low-income housing (e.g., 5% of profits to Housing Trust Fund).

**2. Zoning and Land-Use Deregulation**:

- **Local Preemption**: Federal incentives for states to eliminate restrictive zoning (e.g., single-family-only rules).

- **ADU Expansion**: Promote accessory dwelling units (ADUs) to increase density.

**3. First-Time Homebuyer Support**:

- **Tax Credits**: Expand the **Mortgage Interest Tax