FILE - A home under construction marked as"SOLD" at a development in Eagleville, Pa., is shown on Friday, April 28, 2023. The United States is slogging through a housing affordability crisis that was decades in the making. The shortage pours cold water on President Joe Biden's assurances that the U.S. economy is strong and underscores the degree to which Republican presidential candidate, former President Donald Trump, has largely overlooked the issue.
Administration officials are confident that shelter inflation will soon cool, but the damage across several years is apparent to advocates and economists. Mark Zandi, chief economist at Moody’s Analytics, said that the outcome of the November election could ultimately depend on the path of 30-year mortgage rates.If they dropped closer to 6%, the odds of a Biden victory would increase. But rates moving near 8% might enable Trump to prevail, Zandi said.
“The bottom line is we have to build, build, build,” Biden said Monday in a speech to the National League of Cities. “That’s how we bring down housing costs for good.” Lower rates might play well with voters, but most economists say they would at best offer temporary financial relief. Purchase prices would likely adjust upward in response to greater demand from falling rates.new rules by states and cities
There are far-reaching economic risks because of this. High housing costs can lead people to cut back spending elsewhere. Advocates said it enables landlords to neglect their properties since there is always a ready tenant.
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