HAMPTON, Va. – Addressing the ongoing housing affordability crisis, Tom Barkin, president of the Richmond Federal Reserve Bank, identified key obstacles in a speech at the Virginia Governor’s Housing Conference on Thursday. Barkin emphasized that NIMBYism—resistance from local residents to new development—along with environmental and infrastructure concerns, are significant hurdles in resolving the issue.
In his analysis, Barkin highlighted the financial challenges faced by middle-income professionals like middle school teachers. With a median salary of $60,000 in 2022, they could afford homes valued at around $228,000. However, this is far below the median starter home price of $299,000, illustrating the gap between earnings and housing costs.
Barkin also pointed out that rental costs have surged due to historically low national rental vacancy rates seen in 2021. While he advocated for an increase in housing supply to improve homeownership and rental affordability, he suggested that this would not be achieved through lower mortgage rates facilitated by the Federal Reserve.
The Richmond Fed President’s comments at the conference, reported by ResiClub, underscored NIMBYism as a major factor contributing to the near-historical levels of housing unaffordability. His call for more housing supply reflects a pressing need for policy and development strategies that can overcome local opposition and other barriers to make housing more accessible for Americans across different income levels.
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