Home prices, and by extension the American Dream, are now the most “unaffordable in history,” according to recent data.
“Home prices hit a new record in June amid an ongoing housing shortage, with high mortgage rates continuing to make affordability elusive for millions of Americans,” reports Fox Business.
The report notes that prices increased by 5.4% nationally in June compared to the previous year, only slightly down from the 5.9% increase recorded the previous month.
“The upward pressure on home prices is creating the most unaffordable housing market ever,” said the chief economist of Bright MLS to Fox. “First-time and moderate-income home buyers, in particular, are increasingly being excluded from the housing market.”
The policies of the Harris-Biden administration and Democrats in general are being blamed for this crisis.
Critics argue that Democrats oppose new home construction, particularly single-family homes. Instead, they advocate for “density,” which pushes people into smaller living spaces in urban areas. Critics claim this approach aims to make people easier to control and is based on the flawed notion that cities are better for the environment. They contend that cities are often plagued by pollution and poor living conditions, while rural areas, favored by Trump supporters, offer cleaner environments and a stronger connection to nature.
Furthermore, Democrats, including Kamala Harris, have allowed around 30 million illegal immigrants to enter the country, intensifying competition for housing and driving up prices.
Compounding this issue, the Harris-Biden administration has contributed to severe inflation, one of the worst in recent history. Biden's policies, which included slashing domestic energy production, led to soaring energy prices and, consequently, higher costs for everything. The administration’s excessive spending, totaling trillions of dollars, has devalued the dollar and further inflated prices.
This environment makes homebuilding even more expensive, pushing up the cost of existing homes as well.
To combat record inflation, interest rates have risen. Under the Harris-Biden administration, the 30-year mortgage rates, which were under three percent during the Trump years, have more than doubled to as high as 7.5 percent. Currently around 6.5 percent, this increase means that over a 30-year mortgage, you will nearly double what you end up paying for the house and significantly raise your monthly payment.
High mortgage rates have also reduced the number of homes available on the market. Those who bought homes at lower interest rates are less inclined to sell and buy again while rates remain high.
Owning a home is a cornerstone of the American Dream, offering not only a solid investment but also a pathway to financial security in retirement. A paid-off home provides a valuable asset for emergencies, inheritance, or assisted living in old age. Without homeownership, individuals risk becoming dependent on the government or landlords, akin to modern serfdom.
Some, like Kamala Harris, seem to advocate for policies that could lead to greater dependence on government, undermining personal freedom and autonomy.