The Patriot Post® · In Brief: Bidenomics Shattered the American Dream of Homeownership
Joe Biden and his Leftmedia allies will continue to gaslight Americans about how the economy is supposedly so great, but consumers know the truth. Helen Raleigh explains how the truth is hitting homeowners and prospective buyers like a ton of bricks.
Homeownership has long been a critical component of the American Dream. But under Bidenomics, owning a home is beyond the reach of many Americans due to the rising cost of owning and maintaining a home, according to the latest report by The Wall Street Journal.
Buying a home is more than having a roof over one’s head. Homeownership is the primary driver that has helped generations of Americans build wealth. A home is an appreciable asset, and its value usually increases substantially over a long period of time. Naturally, the primary residence represents the most significant asset among American households. According to the Census Bureau, homeowners’ median net worth is 80 times larger than renters’ median net worth.
Joe Biden ignited inflation with rampant federal spending, however, resulting in rising costs across the board. Specifically, interest rates have more than doubled to roughly 7% now. That means, according to Bankrate.com, as of July 2023, “homebuyers on a $3,000 monthly mortgage payment budget have lost $30,000 in purchasing power since February 2023 alone.”
The Wall Street Journal finds that “homeownership affordability fell to its lowest level since the 1980s as mortgage rates reached a 23-year high and home prices set new records.” Consequently, more and more Americans have given up saving for a house down payment and been forced to miss out on the lifestyle they had hoped for. A Bankrate.com survey revealed that 1 in 4 Americans said the lack of housing affordability and having to rent (rather than own) makes them feel financially insecure.
She rightly notes that “other costs associated with homeownership, such as property taxes, homeowner’s insurance, and maintenance and repairs, have spiked too.” So even if you locked in that 3% rate prior to 2021, you’re still paying more for your escrow and mortgage.
A combination of higher property taxes and rising home insurance and maintenance costs has forced some homeowners to sell because they simply couldn’t afford it anymore.
Aspiring and existing homeowners won’t see any financial relief soon since the most recent inflation report shows that the inflation rate in March rose by 3.5 percent. The stubbornly high inflation suggests that the Federal Reserve will not cut interest rates soon. If Biden wins his reelection or another Democrat becomes the president of the United States, the declining homeownership in America will likely continue.
Raleigh concludes:
Economically, the Democrats’ economic policies can be summarized as one word, “spending,” even though excessive spending is the root cause of high inflation. High inflation means higher interest rates are here to stay. Ideologically, a society with fewer or even no property owners is what the left aims for.
Therefore:
If you want to pursue happiness, own as much as you can and vote those anti-property-rights politicians out of office.