Fannie Mae’s Affordable Housing Approach

Home prices and homeownership rates don’t just affect prospective homebuyers. They have wide implications for the economy and society at large, with potential impacts that will last for generations to come. That’s why Fannie Mae believes that housing should be affordable for all. And here’s how we can all come together to make that happen.

People everywhere are being priced out of housing. But together, we can make it more affordable.

The shortage of safe and affordable housing affects more and more people in the U.S. every day and has growing implications for the economy and society at large. This multifaceted and complex problem has no one solution; but, if we all come together to solve it collectively, we can create opportunity for more people to achieve sustainable, long-term homeownership.

For adults aged 25-34, homeownership rates have dropped 10% since 2005

Over the past decades, the inventory of affordable homes has been in sharp decline, while home prices have risen dramatically. As a result of these and other factors, homeownership rates have dropped almost 10% on average since 2005 among people aged 25-34.

While the impacts on these prospective buyers are clearly significant, the long-term effects on our society and economy may be even more impactful. Research shows that successful homeownership has many benefits. For example, data shows that homeowners are more likely to invest in their area’s economy, get involved in local government, and pass on more wealth to their children.

Let’s share ideas, start conversations, and work together to make housing more attainable for all.

Fannie Mae believes that housing should be attainable and sustainable for all. We know that no one entity can solve this crisis alone. That’s why we’re dedicated to working with our industry partners and community organizations behind this common goal to share ideas, start conversations, and collaborate together to drive positive change.

Here is how we’re putting our plan into action:

Research & Insights

Our expert economists, analysts, and strategists study every major aspect of housing and the economy and publish their findings in timely forecasts, analyses, and detailed reports. Subject-matter experts across the company also share their insights in our Fannie Mae Perspectives, covering important trends and opportunities facing our industry. Let’s all use the resources at our disposal and share information to properly diagnose the problems of the housing market and apply data-driven solutions.

Lending Solutions & Innovation

Our Duty to Serve initiative tackles this challenge in three of the country's toughest markets—manufactured housing, rural housing, and the preservation of existing affordable housing. Let’s work together to continue to come up with new ways to responsibly increase access to credit and encourage the production of affordable supply, especially for those facing affordability or financing obstacles, and those threatened by the loss of low-cost housing.

Partnerships & Collaboration

Our Sustainable Communities Initiative is helping address supply challenges by cultivating partnerships in sectors adjacent to housing, such as employment, education, health, and wellness. The 2019 “Unlocking the Market: Big Ideas for Local Housing Challenges” conference, hosted by Fannie Mae and the Urban Institute, provided the opportunity for diverse organizations to come together and share innovative solutions for affordable housing that can contribute to creating stable and vital communities across the nation. Let’s continue to enhance cross-sector collaboration so we can drive change.

Industry & Borrower Education

Fannie Mae believes in the importance of homeownership education to ensure that lenders and real estate professionals are equipped with the tools and information that can help them better serve homebuyers with the resources they need to achieve successful homeownership. Having a firm understanding of the homebuying process is the key to longevity, which in turn will help homebuyers, including people of color, build wealth. Let’s continue to promote education as a cornerstone of sustainable homeownership.

Together, let’s make housing more affordable for all. Share this article and help spread the word.


Fannie Mae, "Future Homebuyers," Single-Family Strategy & Insights unpublished research (November 2019). | Fannie Mae, "Builders," Single-Family Strategy & Insights unpublished research (December 2019). | "The Decennial Census & American Community Survey," U.S. Census Bureau. | Hayward, "How Zoning Laws Exclude Black Families from Areas of Economic Opportunity," Fortune (July 2020). | DiPasquale & Glaeser, "Incentives and Social Capital: Are Homeowners Better Citizens," Journal of Urban Economics, (1999). | Evangelou, "Wage Versus Home Price Growth," National Association of Realtors (March 2019).