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Middle-Class Housing Affected Due To Budget Cuts

Middle-Class Housing Affected Due To Budget Cuts

The Federal sequestration cuts are taking a toll on the economy and the legislation being finalized by the policymakers is expected to hit some of the largest government agencies. The Department of Housing and Urban Development is being considered to be in the danger zone.

The middle-class priorities will be deeply hit by the appropriations bill from House Republicans, says HUD Secretary Shaun Donovan. The passing of appropriations bill would mean a cut of $3 billion from the president’s request for low-income rental assistance programs. This would mean a cut of 125,000 in housing vouchers for families and short-funded contracts with public housing authorities and private homeowners.

According to Donovan, “The House Republican budget hurts families, our ongoing housing recovery and the health of our overall economy.” He also added, “We need to build ladders of opportunity so that every person has a fair shot at lifting themselves into the middle class. In doing so, we will build a stronger America.”

On the contrary, The Wall Street Journal has reported that in the metropolitan areas, affected by the housing crisis, bidding is going on aggressively with asking prices on the lesser side and winning offers on the other. Although, it is being said that the housing market will change for both the homebuyers and sellers, the supply is still less for the increasing demand of homes for sale.