Address the housing market overhang with a new visa mechanism
The problem: Approximately 20 percent of homeowners owe more on their home than it’s worth. Households have depleted their savings and taken on additional debt in an attempt to remain in their homes, while many have decided to stop making mortgage payments. Rising shadow foreclosure inventory (delinquent homes that are not yet on the market), the prospect of falling prices, and tight loan requirements continue to exacerbate the housing overhang.
The solution: In order to absorb inventory, put a floor under housing prices or possibly boost them. Capitalize on pent-up foreign demand, by creating a new visa mechanism for the first two million non-U.S. residents to purchase a home in the U.S. in the price range of $200-500K, depending upon regional housing prices. Set the residency requirements at three months for the program to have maximum impact.