The biggest undiscussed issue in America? The silent killer of the American Dream? Decider of 2024 elections? From Maine to Montana, unaffordable housing. You say, “What?” I say “Yes.” Here is why it is a time bomb. Those who address it win.
The point is not really elections, but the need for candidates who understand the crisis in housing – unaffordable housing – and how it affects the young. The American Dream, which begins with a home, will die a painful death without leadership.
Here are the raw facts. You need to know them to see what is really happening just below the surface – coast to coast, north to south, east to west: Basic housing – cornerstone of the American Dream, rental, then savings, mortgage, and ownership – is dying, and dying fast. The government is killing it.
Nationally, between 2012 and 2020, median rental values jumped, long before overspending, inflation, housing stock plunging, and companies going bankrupt. In that period, we fluctuated between high and low availability, but costs rose.
Then, briefly, things looked up. Rental prices dropped in 2020, falling 10 percent year over year. By January 2021, rental prices were still down five percent year-over-year. That was the end of hope.
By the same point in 2022, rentals were up 14 percent year-over-year, and residential mortgage payments were up 25 percent. That trend has continued, with unmeasurable devastation for the young.
You can actually feel it. How many do you know – probably more than ever in your life – who have kids, grandkids, nieces, or nephews now living at home? They cannot afford to rent, let alone buy.
Why has this happened? Five simple reasons, with a sixth contributing.
First, is inflation. Democrats in power pushed inflation – at state and federal levels – beyond what was manageable. They spent like drunken sailors, subsidizing whim, solar, wind, and every Democrat-contributing company possible, while cutting fossil fuel capacity, and overspending.
Second, interest rates. Rental prices rose as taxes rose on landlords, and overall housing prices rose from the highest interest rates in 22 years – which are high to control Democrat-driven inflation. High interest rates make young people pay more to buy a home and, indirectly more to rent.
Third, housing stock. With the cost of lumber and labor up, as well as interest on debt that homeowners and house builders need to assume to create housing stock, buildings fell off.
Fourth, the job market. Beyond the hammer hit on the young from inflation and interest, plus shrinking housing stock, good jobs dwindled. Many employers went out of business from unnecessary COVID restrictions. Schools – of all kinds – shut down, compliments of Democrat unions. The labor market became weaker, leading to fewer higher-paying jobs, again affecting affordability for the young.
Fifth, regulation. Higher levels of environmental regulation – state and federal – have suddenly slowed building, slowed home turnover, grinding down availability, sales, and limiting options.
Sixth, illegal immigrants. With eight million – or more – new illegal immigrants flooding the country, places from California to New York, Maryland to Maine have put illegal aliens in housing that should have been for citizens, including younger people.
In places like Brunswick, Maine – a beautiful city near the coast – fresh housing intended to house those citizens who needed it most, younger citizens, working people, veterans – was suddenly given away, with the Democrat governor’s stunning nod – to illegal aliens, along with handsome checks.
Seventh, indifference. The open secret? All those Democrats who say they care about young people, who say they want a good life for those young people, are denying those young people the American Dream.
Democrat leaders in Congress, the White House, and states from Maine to California are not only killing the savings of seniors but the American Dream for younger people.
These Democrat legislatures, governors, and national “leaders” do not care, except about themselves. For young and old, they are killing the American Dream, by inflating the dollar beyond repair, putting unmanageable interest on borrowing (and the national debt), limiting housing stock, undermining education, cutting top jobs for the young, overregulating builders, giving away housing to illegals – calling them “New Americans” – and abandoning young Americans.
In a phrase, these irresponsible holders of power are betraying the American Dream, creating an unaffordable housing crisis that has betrayed America’s youth. This crisis in housing must stop because it is killing America.
Robert Charles is a former Assistant Secretary of State under Colin Powell, former Reagan and Bush 41 White House staffer, attorney, and naval intelligence officer (USNR). He wrote “Narcotics and Terrorism” (2003), “Eagles and Evergreens” (2018), and is National Spokesman for AMAC.
Who needs affordable housing when they have such lovely tents to live in on beautifully maintained university grounds? All the amenities included as well as hourly drum circles with call & response robotic chanting in a Jew hating, Hamas loving community atmosphere. Security is also provided in a Marxist gated community. And all fully funded by the benevolent Democrat Party who can’t spend your social security “lock box” fast enough!
So what else is new? The Democrats have been trying to destroy the United States of America since 1861. Now they have billionaires like George Soros funding the destruction. And the American people sleep on!
Our efforts in green energy will kill our overall economy. Many of our government programs are nonsensical. We shut down drilling in the Gulf of Mexico and Alaska and stop building oil pipelines from Canada and then buy more oil from other nations. This has no effect on our use of oil, so net effect on U.S. carbon emissions is zero. We mandate transition to EVs, but have no programs to increase electricity production and transmission. So how do we power-up more EVs without a program to generate and transmit the needed electricity? We ignore the fact that China controls the production of minerals to produce EV batteries. We ignore the fact that mining these minerals creates air and water pollution. It is as if pollution in China or Africa doesn’t matter. Meanwhile China and India build new coal powered electricity generating plants. The net result is more global generation of carbon emissions even though we reduce ours. Our policies are nonsensical and tragic.
Real estate is forming a HUGE bubble. A house two doors down from me was listed at 179k and one across the street is listed at 198k. This is in a small town (6000?). These are 3 to 4 times as much as I paid for my house (30 years ago). 24 acres of farmland are listed at 249k. Who can afford this real estate when interest rates and inflation are rising and “new” jobs are either part-time or given to immigrants?
All part of the plan to establish an all empowered government that controls every aspect of your life from cradle to grave.
I do feel bad for the young people trying to start out. When we faced the same problem 50+ years ago, mortgage interest rates were 8%, you needed 25% down and your wife’s income could not be used for qualifying on the mortgage if she was of child bearing age. Starting out comes with some sacrifices. It may mean living at home with Mom and Dad, not having a new car for a while, eating most meals at home and not getting everything you want, You can thank Joe Biden and the Democrats for opening up the our southern border, shutting down domestic oil production and runaway inflation. Think about that when November 5 rolls around in a few months.
The campus tent cities should be sprayed with skunk spray
While i agree with the points made by RBC, i must add to them. Millennials insist on driving new cars, eating out often and clubbing where they pay $15 a drink. Then theres the drive thru boutique coffee because making their own java is beneath them. Since we boomers taught them that manual labor is demeaning, those who should dont consider the trades. Instead they party for four years often ending up with a unmarketable degree. We did them no favors by doing the yard work ourselves and shuddering at the thought of junior flipping burgers in hs. Yes, they’re in dire straits, but continuing to fritter away their incomes wont help.
But I he quasi government collects our tax dollars and distributes among illegals and Congress!
In January, I rode the Amtrak from Kingman, AZ to Seattle to visit a friend. I love the train! Train tracks do not go through the nicer parts of towns and cities, they go through the industrial areas. These were fences between the warehouses and closed factories and a strip of what I called “No man’s land” between the fences and the train tracks.
From LA to Seattle, it is about 900 miles, so I saw 1800 miles of wet, muddy homeless camps! It was a real eye-opener for me to see an endless chain of those dome tents, crates, discarded wet and muddy clothing, bedding and trash. I also saw dispirited people poking through their ruined camps. Yet, it rains hard on the coast, and it also snowed in a few places.
I had no idea how bad it was until I took that trip. My friend’s son took me for a ride through downtown Seattle early in the morning when he took me to the train station. I lived in Seattle 20 years and worked in nice office buildings downtown. I could walk to the Public Market or the Waterfront on my lunch breaks. I rode the bus.
Downtown Seattle has homeless tents on the sidewalks, in front of the Pike Street Market and in front of the upscale shops and stores that are in that part of the city. there were people sleeping or passed out on the sidewalk in front of the Pike Street Market. It was the saddest thing I had seen in a really long time. Seattle was a beautiful city with an amazing downtown. People came from all over the world to see the Pike Street Market, the Art Galleries and the amazing waterfront and aquarium.
It was heartbreaking to see. The scope of human misery in this country is beyond our comprehension. This is the democrat-run country we now have. Welcome to the Socialist States of Amerika.
We all need to pray to God that the 2024 election goes to Trump and we can start to make a turn !!
All part of the Marxist plan. Get everybody into human warehouses (called apartments). Whatever is of value will be owned by the government.
I totally agree; and the recurring theme…government. Other than problems with interpersonal relationships, nearly all of legal American citizens’ problems are created by the bloated, power craving government. Since government is the problem and a big part of a solution to a problem is not using the problem as solution to the problem, the problem has no solution. Quite the paradoxical existence we’ve had foisted on us by the swamp tyrants.
I’ve noticed that a lot of affordable housing apartments are being built in suburbia. Do the commies want us living in one area, controlled area?
YOu forgot to mention that rich are buying up houses and condos when just as housing prices were rising then renting them out at higher prices thus hurting the rental ability of lower income people
Unaffordable for Americans “Refugees” are taken care of first
7% interest rates for a mortgage I’m shocked! When my wife and I bought our first house in 1980 thanks to the Democrats and Jimmy Carter mortgage rates were 19.5% say it with 19.5% thank a Democrat everything they touch they destroy then they somebody else and ask you to re-elect them
Step #1, if you are recently married with no children, do you really need a 5 bedroom home with 4000 square feet? Maybe start there.
They don’t want the American dream. They want power over everything. Starting with the young to make them dependent on the government. And taking all the money away from middle class seniors. That way they can’t go home again to live with mom and dad. For they are broke too. Soon we all will get digital money. Our money won’t be worth anything and they, the government can rule with an iron fist. How did this happen? The elites from Soros to Gates bought them the power. Through politicizing the DOJ, FBI, CIA, FISA courts, IRS. DA’s all over America throw in the judges and the MSM and you have a coup. And we all let it happen. No demonstrations. No screaming in the streets unfair. That is now allowed by Hamas supporters. Our flag is burned in the street and what does ole Joe do says Don’t to Iran. Like they are a four year old child. The election will not change anything they have already overthrown America.
Another segmnt of the economy the dem-o-rats have destroyed.
One quick way to increase available homes would be to eliminate the ability to deduct mortgage interest on homes that are not the persons primary residence
Big problem with housing is gov. regulation which can add many thousand dollars in cost of permits since we are not bright enough to know what we want without Big Brother telling us. This along with younger peoples expectation of starting out where their parents are after a lifetime of work, The concept of starting out with something you can afford and working up from there is a sadly outdated concept.
“You’ll own nothing and you’ll be happy 2016 video by the World Economic Forum
It seems the communist/democrats are right on schedule for their destruction timetable. Remember, the globalists said by 2030 we all would own nothing and be happy about it. 4 more years of the communists in charge will put an end to America as we have known it.
You can throw in the cost of Healthcare and Food. As far as Maine, New York, Vermont,and Massachusetts is concerned, you wanted Democratic Leaders? You wanted sanctuary cities! Boo Hoo! I feel as bad for you as you do for the way your party is railroading Trump. Now do you believe him? You were told this would happen 8 years ago! Eat it!
“This too shall pass”. Wife and I bought our first new house in 1983, @ 12% fixed interest for 20 years. Prime rate had been as high as 21%; most of our peers jumped in at the higher rates with the intent to refinance later. My dad had to be peeled off the ceiling when he heard about our financial arrangement (which was good!), but he finally admitted being glad that we were willing to get into the market. We’ve bought six houses since, sold five, in all economic conditions.
The Biden administration is making Wall Street billionaires at the cost of the American middle-class. Biden claims he is for the working people, BS!
It is affecting seniors as much as the young. In many cases even more. The left/Democrats do not care about anyone but themselves and some Republicans are traitors as well as the Democrats.
Great article as usual RBC. Many have seen much of what he talks about here, but too many others put partisan blinders on and ignore what’s happening. But they won’t be able to ignore it for long. Besides the rising costs RBC mentions, everyday we have the inflated cost of food and fuel and energy to heat and cool our homes and get to and from work that is getting prohibitive for many. It’s at a point where many have to choose what they can or cannot afford to buy now, especially seniors. And it will only get worse until Bidum is gone and Trump is the only one who can fix it!
Increasingly unaffordable housing…thanks mostly to traitors JoeBama and comrades. November 5 will determine whether we are America or Amerikauela, and that’s a fact.
Trump = prosperity, safety, the American Dream and a Constitutional Republic
JoeBama= struggling, unsafe, collapsed grid and their totalitarian tyranny hell
Thanks to the DELIBERATE DUMBING DOWN, INDOCTRINATION instead of education, CORRUPT commie/globalist owning/running MSM and their 24/7 PROPAGANDA, wide OPEN BORDERS/PAYING UNVETTED counter-culture critters including TERRORISTS, FELONS, MURDERERS along with the parasites, WEAPONIZED DOJ/FBI/IRS/etc., CORRUPT JUDGES, LAWFARE, BEGGING FOR OIL from enemy nations when we have more, cleaner, right here!
While we have an increasing number of clueless, indoctrinated individuals who will stupidly vote Commie D, add in the illegals (yes, they’ve already been unchallenged and successfully voted in elections since 2016…now there are tens of thousands more illegals who will also vote D for the free-free-free to continue!), the requisite dead, and of course manipulations from rigged voting machines and useful idiots manipulating the counting of ballots… for what could be another fraud JoeBama win.