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.
