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#realestate #housingmarket #money



Affordable housing has become THE defining challenge of this generation not only in America, but across most of the world.

House prices have grown so much faster than wages that young people will struggle for years JUST to save a down payment, all so they can struggle for DECADES to make the REpayments on their mortgage. At the same time we are told that our home is our biggest asset, and the last time the real estate market saw a significant dip, it took the global economy down with it.

So can we make houses affordable… without destroying the economy?

According to data from the U.S. Census Bureau the homeownership rate in America is sixty five point six percent [65.5%] so the majority of people have a direct financial interest in not seeing their biggest financial asset lose its value.

This is in SPITE of the fact that according to a study by the CATO institute EIGHTY SEVEN percent [87%] of Americans are worried about the cost of housing which means there is a big overlap between people that want affordable housing… as long as it isn’t theirs. This means the only winning course of action for politicians is to performatively make the problem worse.
Administration has announced plans to offer tax credits of up to $10,000 to families selling their home to another owner occupant in addition to another tax credit of up to $5,000 to offset mortgage rates for first home buyers.

These could be used in conjunction with a TWENTY FIVE THOUSAND DOLLAR [$25,000] bonus for first generation homebuyers.

BUT if you are a new buyer and you get $40,000 worth of extra tax bonuses and grants, all that will do is make affordable housing… $40,000 more expensive which doesn’t really make you any better off overall. So just making houses cheaper isn’t enough to make houses more affordable UNLESS you look at some radical… and not so radical solutions, that won’t be politically popular… but just might work…

So it’s time to learn How Money Works to find out if you can make the houses affordable… without destroying the economy in the process.