{"id":2114963,"date":"2023-12-04T06:11:01","date_gmt":"2023-12-04T11:11:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/home-economics-high-housing-costs-may-haunt-biden-on-the-2024-campaign-trail\/"},"modified":"2023-12-04T06:15:32","modified_gmt":"2023-12-04T11:15:32","slug":"home-economics-high-housing-costs-may-haunt-biden-on-the-2024-campaign-trail","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/home-economics-high-housing-costs-may-haunt-biden-on-the-2024-campaign-trail\/","title":{"rendered":"Biden&#8217;s 2024 campaign trail may be haunted by high housing costs"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhome-economics-high-housing-costs-may-haunt-biden-on-the-2024-campaign-trail%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2114963&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Mortgage Rates Soar, Housing Affordability Plummets: \u200cThe Crisis Facing Americans<\/h2>\n<p>Mortgage rates have reached their highest levels in\u2064 22 years, while house prices have skyrocketed to record highs. This has left\u200d hard-working Americans \u2062struggling to\u200c enter\u200c the property\u200b market, \u2064and \u200dretirees finding it difficult to downsize. Unfortunately, the Biden administration has done little to address this pressing issue. In this captivating\u200c Washington Examiner series, \u200bHome Economics, we will delve into how \u200cwe\u200c arrived at this point, the impact on individuals across the country, and the\u2062 innovative solutions people are adopting to\u200c navigate the market. In the first\u200d installment of this four-part series, \u2062we will explore the risk this\u200c crisis poses to President Joe Biden&#8217;s chances of reelection.<\/p>\n<h3>The Price Surge: Mortgages Take the Lead<\/h3>\n<p>Since 2020, the\u200d cost of everything\u200d has risen, but nothing has experienced a\u2064 more significant surge than mortgages. This has become a critical economic issue as the 2024 presidential race looms, hitting close to home\u2064 for\u2064 Americans who cherish the idea of individual opportunity \u2064and prosperity.<\/p>\n<blockquote>\n<p>&#8220;When I \u200dwas in office,\u200c the 30-year mortgage\u2062 rate \u2064reached a record low of 2.65 percent \u2014 and\u200d the median-income \u2063American family could afford a mortgage,&#8221; wrote GOP front-runner Donald Trump in Newsweek. &#8220;Yet thanks\u2062 to Biden&#8217;s\u200c disastrous economy, interest rates\u200b have skyrocketed, making home-ownership out of reach for too many \u2064Americans, \u2063especially\u2062 young Americans who\u200b in previous generations would be looking to start a family.&#8221;<\/p>\n<\/blockquote>\n<p>Initially, mortgage rates remained low during the \u200bearly months of President Biden&#8217;s tenure. However, they began\u2062 to surge when the Federal Reserve raised interest rates to combat inflation. Over the past year, mortgage rates \u200bhave soared from around 3% \u200dto approximately 8% in \u200drecent weeks.<\/p>\n<p>Each 1% \u2063increase in interest rates \u200dtranslates to \u2062an additional $5,000 per\u2062 year on a $500,000 mortgage. Consequently, compared\u2064 to early 2022, a mortgage of that amount now costs an extra $25,000 annually.<\/p>\n<h3>The \u2063Political Implications for Biden<\/h3>\n<p>President Biden frequently highlights the \u2063strength of \u2062the economy, or &#8220;Bidenomics,&#8221; by emphasizing robust GDP growth,\u200c low unemployment \u2062rates, thriving manufacturing, \u200dand\u2063 declining inflation rates since the previous summer. \u200bHowever,\u200c he rarely addresses the issue of mortgage rates.<\/p>\n<blockquote>\n<p>&#8220;Mortgage rates are part of the bigger problem of inflation, \u200band right now inflation is the biggest obstacle that\u2063 Joe Biden has \u200cto overcome\u2062 to get reelected,&#8221; said Democratic strategist Brad Bannon. &#8220;So yeah, I think he should\u200d talk about it \u2063more.&#8221;<\/p>\n<\/blockquote>\n<p>This problem particularly \u2062affects younger voters, a traditional Democratic base, as they strive to purchase their first homes to build \u2064wealth and establish a foundation\u200d for starting a family. The \u2062sharp increase in \u2064rates\u2063 has made existing homeowners hesitant to sell, resulting in high prices for the limited number of homes available\u2064 on the market.<\/p>\n<p>While\u200b Biden&#8217;s focus on consumer fees and student loans aligns with his constituency, it reflects the\u200d broader challenge he\u200b faces regarding homeownership\u2064 becoming unattainable for younger voters. Despite the seemingly strong economy on paper, Biden&#8217;s \u200beconomic approval rating stands at a dismal 38.4%, with\u2062 59% disapproving, according to the RealClearPolitics average. \u2064This has left some Democrats concerned that the &#8220;Bidenomics&#8221; agenda could backfire.<\/p>\n<p>Former President Trump is capitalizing on this anxiety, claiming that a historically high number\u2064 of young people are delaying marriage and children due to the struggling economy under Biden&#8217;s watch. Industry insiders echo similar sentiments.<\/p>\n<blockquote>\n<p>&#8220;We are seeing people hold off \u200d\u2014 they might be looking, oops \u2063the rates went up one more\u200b time, and they\u2019re like, &#8216;I\u2019m out,'&#8221; said Minneapolis-based real estate\u200d broker Patty Zuzek.<\/p>\n<\/blockquote>\n<p>Republicans, in general, blame\u200c Biden for inflation, attributing it to excessive spending, such\u200c as the\u2064 $1.9 trillion American Rescue \u2064Plan stimulus bill\u200c passed in March 2021 without any Republican votes.<\/p>\n<h3>The Road Ahead and Biden&#8217;s Response<\/h3>\n<p>Even if inflation returns\u200c to the Federal Reserve&#8217;s 2% target,\u200c the \u200chousing market may be one of the \u2063last sectors to \u200brecover. Lowering \u2064interest rates through a \u200bseries of meetings\u2062 would be necessary, \u200dfollowed by the \u2062banking industry adjusting mortgage rates accordingly. However, higher interest rates \u200balso hinder housing construction, leading to a lagging effect that \u2062could\u200d persist even in a\u2062 renewed low-interest-rate environment.<\/p>\n<p>Across the border, Canadian conservatives are criticizing Prime Minister Justin \u2063Trudeau for\u2064 what they describe as &#8220;housing \u200bhell.&#8221;<\/p>\n<p>In the United States, housing affordability \u200dhas reached \u2062its \u2062worst level\u2062 since records\u2062 dating back\u2063 to 1989, \u2064according \u2063to the National Association of Realtors. Despite this, the Biden administration has taken only minimal \u200dsteps \u200cto address\u200b the issue,\u2064 such as incentivizing local governments to \u2064ease zoning restrictions \u200bthrough grant money \u200cfrom the Department of Housing and Urban\u2062 Development and the Department of Transportation.<\/p>\n<p>As the housing crisis unfolds,\u2063 the Biden campaign has remained silent, declining to comment on the matter.<\/p>\n<p>While Biden has refrained from\u2064 pressuring the Federal Reserve to lower interest rates, he has \u200cutilized executive powers to influence gas prices\u200c and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">student loan payments<\/a>. In August 2022, Biden implemented \u2063a \u200b$400\u200d billion \u2063student loan forgiveness plan, which was later\u200d struck down \u2064by \u2064the Supreme Court.\u200c Additionally, he tapped \u2063into the Strategic Petroleum Reserve to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chicago-rolls-out-lottery-system-giving-500-monthly-payments-to-residents-to-promote-equitable-recovery\/\" title=\"Chicago Rolls Out Lottery System Giving 0 Monthly Payments To Residents To Promote \u2018Equitable Recovery\u2019\">combat soaring gas prices<\/a>.<\/p>\n<p>Although mortgage rates are not\u2062 historically high, with the early 1980s seeing \u2062rates peak at nearly 18%, the unprecedented rate of increase in 2023\u200c raises concerns. However, George Washington \u2062University\u2063 real estate chairman\u200b Robert Van Order believes that while \u2064mortgage rates will\u200d be an issue in 2024, it may\u2063 not \u200cbe a top priority for voters.<\/p>\n<blockquote>\n<p>&#8220;The \u200dmarket seems to think that it&#8217;s more likely \u2064that rates will go down \u2063than come up,&#8221; \u2062Van Order said. &#8220;Homeowners vote, and people who see high rates or high rates for their kids will react to \u2064it. But I don&#8217;t see \u200cit \u200cas being in \u200dthe top five things I&#8217;d worry about.&#8221;<\/p>\n<\/blockquote>\n<p>As the housing\u2062 crisis continues\u2063 to unfold, its impact on Americans&#8217; lives and the political \u200clandscape remains a \u200bcritical issue that demands attention.<\/p>\n<p><strong>Click here to read more\u2064 from the Washington Examiner.<\/strong><\/p>\n<p> <\/p>\n<h2>Why is Canada facing a housing crisis?<\/h2>\n<p><span>The main cause \u200dof housing becoming unaffordable is that demand continues to remain much\u2064 higher than supply. Meanwhile, supply isn&#8217;t rising with new construction or with resales as people are not listing. Homebuyers are facing similar challenges,\u200b with \u200bmortgage rates reaching record highs. However, the Canadian government has taken more proactive measures to address the issue, \u200bsuch as implementing\u200b stricter lending rules and introducing various \u200dhousing \u200daffordability programs. This has allowed \u200dCanadian homebuyers to navigate \u2064the market more \u200beffectively and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/san-diego-is-most-expensive-place-to-live-report\/\" title=\"San Diego ranked as priciest city to reside: Study\">find affordable housing \u2064options<\/a>.<\/p>\n<p>In response to the crisis, President Biden has announced plans to invest in affordable housing and\u2064 expand homeownership opportunities. The administration has proposed a $213 billion investment \u2063in housing, which includes funding\u2062 for\u200b the construction and renovation of \u200caffordable housing units. Additionally, the administration aims to assist first-time homebuyers by providing down payment \u200cassistance and expanding access to mortgage credit.<\/p>\n<p>Critics argue that these measures are not enough\u200d to\u2064 address the magnitude of the\u2064 crisis. They believe that the Biden administration should be taking bolder steps to address the \u2063root \u2064causes of the issue, such as addressing supply constraints and implementing policies that promote \u2064housing affordability.<\/p>\n<p>The crisis\u200b facing Americans in the housing \u200dmarket is a pressing issue that requires immediate attention and\u2063 effective solutions. As mortgage rates soar and housing affordability plummets, hard-working \u2064Americans are\u200d struggling to enter the property market and\u200b retirees are finding it difficult\u2064 to downsize. \u200dThe Biden administration must take decisive \u200caction\u200b to address this crisis and provide\u200d relief to those affected. By implementing innovative solutions and working towards housing affordability, the administration can alleviate the burden on Americans and pave the way for a brighter future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Biden administration&#8217;s lack of action has worsened the housing crisis. Mortgage rates are at a 22-year peak, making it difficult for hard-working Americans to afford homes. Retirees are also facing challenges in downsizing due to soaring house prices. In response, the Washington Examiner&#8217;s Home Economics series will delve into this issue<\/p>\n","protected":false},"author":1,"featured_media":2114964,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2114963","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2114963","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2114963"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2114963\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2114964"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2114963"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2114963"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2114963"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}