DLC Proposes Plan to Spur Housing Recovery

In First Policy Report, New DLC Proposes Plan to Spur Housing Recovery
New Analysis Recommends Expanding and Advancing Federal Homebuyer Tax Credit to Boost Broader Economy
May 4, 2009

In its first policy report released under the new leadership of CEO Bruce Reed, the Democratic Leadership Council (DLC) outlined a plan to spark home purchases by expanding eligibility for the federal Homebuyer Tax Credit and advancing it so first-time buyers can afford to make a down payment.

In "Moving Houses: How Sparking a Housing Recovery Is the Key to America's Economic Recovery" DLC senior fellows Paul Weinstein Jr. and Marc Dunkelman note that the glut of foreclosures has obscured another crisis: reticence among many potential homebuyers to dive into the market. Few doubt that the housing bubble's implosion drove the nation into its current recession. But the authors compile evidence suggesting that an upswing in the housing market could also play a crucial role in turning the broader economy around.

Newly-installed DLC CEO Bruce Reed commented: "The housing market helped start this economic crisis. Getting homes moving again is crucial to speed the nations recovery."

Read the full report here (PDF).