If you’re a young person hoping to buy your first home or condo, President Joe Biden is seemingly doing everything in his power to make that dream less feasible. The president has pursued and called for several policies that make it harder for millions of young people to own a home.
High mortgage interest rates are one of the biggest obstacles to affording a home. Those exist thanks to the Federal Reserve’s attempts to cool inflation, which peaked above 9% in 2022 under the Biden administration.
Irresponsible federal spending, plus loose monetary policy from the Federal Reserve, caused that inflation. One of the biggest culprits behind this inflation was the $1.9 trillion American Rescue Plan Act that, among other wasteful provisions, provided states, municipalities, and tribal governments with money they didn’t need and spent on pork. The law was responsible for raising inflation by as many as 3 points, according to a study from the Federal Reserve Bank of San Francisco.
On a $300,000 home with a 30-year mortgage loan, a 7% mortgage interest rate versus a 3% mortgage interest rate is a difference of $585 per month, according to Bank Rate. For many people, $500 per month could be the difference between affording a home and not.
Biden has also proposed tax credits to first-time home buyers to make homeownership more affordable. However, that comes with its own set of problems that could raise starter home prices. It would increase the demand for homes without increasing the available supply. Plus, people selling and building homes would know the credit exists and adjust their prices accordingly.
Additionally, Biden supports teachers’ unions and routinely calls for higher teacher pay. There’s a problem with increased teacher pay, however. Most public school funding comes from property taxes, and substantially raising teacher pay would force towns to raise taxes on homeowners, making home ownership less affordable.
Plus, the Biden administration has failed to secure the southern border. The country’s illegal immigrant population has increased from 11 million to 13 million since Biden took office, adding more people to this country who should not be here.
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Mass migration increases housing costs, particularly in areas with high immigrant populations and their surrounding suburbs. It boosts the demand for housing, increasing prices for both homes and rentals, multiple studies have shown.
If Biden wanted to prioritize making home ownership affordable, he would embrace fiscal responsibility and secure borders. Unfortunately for young people, that is the opposite of Biden’s plan.
Tom Joyce (@TomJoyceSports) is a political reporter for the New Boston Post in Massachusetts.