"Given President Trump's pledge to conquer America's housing crisis, and the plan he just grandiosely delivered to do it, you'd think he'd soon hatch a new credo to spotlight the campaign-something like MAHAA, for "Make America's Homes Affordable Again." Indeed, the biggest part of the overall "affordability" problem that's so crucial to voters, and increasingly dominates the debate among politicians-led by Trump himself-is the explosion in the cost of housing."
"The rise in what families need to pay for the staple of staples that they strive to own over all others has, since just before the pandemic's onset, far outstripped the sticker shock on the likes of groceries, cars, insurance, or any other key item. Put simply, America's biggest household expense has grown so enormous that most first-time buyers don't have the means to take it on."
"The two factors that determine the ability to buy, home prices and mortgage rates, have both moved in the wrong direction big-time, and shockingly fast. According to the American Enterprise Institute, average prices have risen over 150% since the start of 2019, and home loan rates posted at Mortgage News Daily have ballooned by two-thirds, from roughly 3.7% to today's 6.2%."
A federal plan would ban large institutional investors from buying single-family homes and converting them into rentals as a way to lower prices and expand ownership. Rapid increases in home prices and mortgage rates have combined to push ownership out of reach for many potential buyers: average prices rose over 150% since early 2019 while typical mortgage rates climbed from about 3.7% to 6.2%. The interaction of higher prices and rates leaves an estimated three in four households unable to afford homeownership. The proposal frames investor acquisitions as a major affordability driver and seeks to restore purchase opportunities for first-time buyers.
Read at Fortune
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