Amid Record Inflation, Biden’s Housing Crisis Continues to Worsen

Amid Record Inflation, Biden’s Housing Crisis Continues to Worsen

The is giving off real warning signs of a possible recession, and as consumer costs rise to record levels, the White House faces a housing crisis that looks eerily similar to that seen just prior to the 2008 crash.

While President Biden and the White House scramble to stay above water amid a growing list of crises, from skyrocketing prices at the pump to record-breaking numbers of illegal migrant crossings at the southern border, one crisis that seems to be largely ignored is the housing crisis. The median price of a new home in the U.S is now 6.5 times higher than the median income, causing a pricing-out of a significant number of first-time buyers. As income fails to keep up with property prices, an increased number of Americans are forced to remain in the rental market, which is seeing a price hike, too.

As new data pours in that points to the being in dangerous territory, one of the most terrifying figures is that there has been an increase of almost 20% in the cost of home prices over the past twelve months. As the economy shifts heavily towards a downward trend and the stock market cools off, traditionally, many people turn their focus to property as a more stable investment for the future. Still, for many Americans, the dream of homeownership has never been further from attainable.

During times of economic hardship, homeowners are traditionally those who are better off. However, current market conditions indicate that new homeowners and first-time buyers are going to be the hardest hit. A critical indicator of the overall health of the housing market is the mortgage-to-income ratio. Back in December of 2021, the mortgage-to-income ratio was around 24% of the average household income. However, recent data suggests that the number is now closer to 31%, the highest it has been since September 2007, just prior to the 2008 crash.

In the long term, a rise in mortgage rates may help to cool off the steep price of property, but in the short term, there will almost certainly be a rush to buy homes before mortgage rates go any higher than they already are. This is only going to make it harder for those pursuing first-time homeownership to achieve their goal.

There is no doubt that the best way to ease the pressures of the looming housing crisis would be to take action to stabilize and revitalize the economy. Yet President Biden and the White House seem to have their focus elsewhere. Last week President Biden signaled that he may soon take action to cancel student loan debt, demonstrating that strengthening the economy isn’t on his priority list. This has caused outrage amongst Republicans on Capitol Hill. Republican Senator Mike Braun (R-Ind.) issued a statement on Wednesday that “The majority of Americans do not have college degrees…why should they be forced to pick up the tab for college degrees in the name of pandemic relief?” Student loan debt in the United States totals around $1.747 trillion and, on average, grows at annual speeds six times faster than the economy.

As the close in, many voters will be taking the worries of out-of-reach housing prices, rising rent and the increased cost of living with them to the polls, possibly shaking up the balance of Congress. For things to improve, legislators will need to act to bolster the economy and bring this back on track.

The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.

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