WASHINGTON, D.C. — Congressman Mike Flood convened a hearing of the Housing and Insurance Subcommittee on the 119th Congress, opening the session with a call to address the housing shortage crisis. He emphasized that America is not building enough housing to keep pace with the growing demand.

Flood highlighted the affordability challenges created by the rising house prices since 1995, stressing the impact on Americans’ financial security.

Flood: “Young people saving up to buy their first home are renting for longer, middle-class workers are struggling to make the rent and Americans today feel less secure about their financial future because their bills are going up.”

Flood encouraged the subcommittee to examine the root causes behind these pricing issues, clarifying that the problem isn’t a lack of income or savings, nor an absence of federal funding.

Flood: “The reason for high housing costs is simple, we are not building enough homes in this country to meet demand. Some estimates put the gap between housing supply and demand at around 3.85 million units nationwide. Some put it even higher at more than 5 million units.”

The subcommittee also plans to address the barriers to construction, including government regulations, labor costs, material prices, and financing challenges.

Tara Vasicek, Columbus City Administrator, participated as a witness in the hearing titled "Building Our Future: Increasing Housing Supply in America." She explained that despite Columbus’s proactive housing production efforts, these actions still fall short in meeting the growing demand.

Vasicek discussed the steps the city has taken to ease regulatory hurdles in housing development.

Vasicek: “Many cities have regulations that limit housing density, Columbus does not. Accessory dwelling units, mixed-use types are allowed by right in all zones. We have changed our codes to make in-fill development and adaptive re-use easy to complete. Our local permitting process is efficient. All housing permits are issued within two weeks of the city receiving a completed application.”

She also highlighted that Columbus is leading a workforce housing development subdivision, with 325 housing units under construction, which is six times the number of units previously being built.

Vasicek pointed out that the project leverages tax increment financing (TIF), which is a significant financial tool for housing development in Nebraska.

Vasicek: "TIF allows for the capture of up to 15 years of property taxes paid on the project’s improvements to use as funding to build out the project. TIF is the most efficient tool available to Nebraska communities for housing development."

In addition to TIF, Columbus allocates a portion of local sales tax to economic development, with the majority of funds directed toward housing projects. Vasicek also mentioned the city's success in securing grants, including a revolving loan fund that acts as short-term gap financing for workforce housing projects.

However, she noted that some federal grants have requirements that discourage builders from participating. Vasicek listed obstacles such as local land prices, lengthy government regulations, and storm water management policies enforced by the EPA as factors complicating development.

Vasicek urged Congress to prioritize funding for communities that have made substantial housing regulation reforms.

Flood and Vasicek Urge More Action on Housing

‍Flood’s hearing underscored the urgent need for systemic reform to increase housing supply and alleviate affordability pressures across the country. As cities like Columbus innovate to break down barriers to housing development, the call for federal funding and further deregulation grows louder.

Vasicek’s recommendations underscore the need for stronger partnerships between local, state, and federal governments to support communities actively working to tackle the housing crisis. By improving housing availability and addressing local barriers, the goal is to make housing more affordable and accessible for Americans.

The conversation continues as lawmakers seek ways to support cities and communities that have embraced housing reforms.

Originally reported by Dan Swanson in News channel Nebraska.