A prominent real estate firm recently publicized a distressing survey, which showcased that both renters and homeowners are drastically compromising their standard of living in order to meet their housing expenses in the current economic regime under President Joe Biden. It alarmingly revealed that approximately 20% of homeowners and renters confessed to forgoing meals to manage housing costs in today’s economic setting.
This groundbreaking survey was accomplished by Redfin, which discovered that the mean rental price asked by landlords skyrocketed from a mere $1,700 in January 2021, the month President Biden assumed office, to a staggering almost $2,000 by February.
Besides this sobering alteration in living standards, homeowners and renters across the country have made further sacrifices to keep a roof over their heads. The survey indicated that 20.7% of respondents acknowledged the necessity of increasing their working hours, while 20.6% had resorted to selling personal possessions.
Adding to this daunting list, more than one-sixth of respondents have been tapping into retirement funds, an act commonly seen as a last measure for emergency financial circumstances. Even more alarmingly, 15.6% disclosed deferring necessary medical treatments in order to manage their housing payments.
When diving into deeper financial waters, as of February, the median household income was essentially $30,000 short of what would be required to afford a median-priced home in the United States, as outlined by Redfin. This statistic is a stark contrast to the economic environment in 2021, when Biden took over the presidential office, where, notably, median household earnings were several thousand dollars more than would be necessary to purchase a median-priced home.
The lack of affordability is painfully underscored by the fact that the median house price in the U.S., as reported by the Department of Housing and Urban Development during the fourth quarter of 2023, reached $417,700. This trend presents a severe burden to ordinary American families trying to secure housing.
Irrespective of nationwide figures, the affordability crisis deepens in certain states. In California, for instance, the cost of a median-priced property has escalated to a sky-high $675,667, as of January, as shown by data from Zillow.
In an expected response to the growing concerns, the Biden administration in May 2022, enthusiastically announced an ambitious plan intended to enhance housing supply and decrease the rental load on American citizens. Despite initial sparks of optimism, the actual implementation paints a rather different picture.
Interest rates stubbornly remain at elevated levels. Compounded by a considerable deficit of skilled construction labor, the result is a shrinkage in the number of new houses being constructed between 2022 and 2023, as validated by data from the U.S. Census Bureau. This fact stands in stark contrast to the promises made by the current administration.
Ironically, thousands of construction laborers find themselves engrossed in green transport projects, a cornerstone of the Biden administration’s plans. This diversion of manpower further hinders the administration’s initial promise of addressing the housing crisis head-on.
There is a mounting apprehension among experts that the fiscal policies espoused by President Biden, his proposed budget being on top of the list, may unwittingly instigate a rise in inflation, thereby increasing the cost of living burden for average Americans.
As of the 6th of April, the handling of the economy by President Biden was looked upon unfavorably by an average of 57.8% of U.S. citizens, as per the aggregation of survey data by RealClear.
To underscore Americans’ dissatisfaction, a CBS News poll conducted in March observed that a sizable 68% of the population fondly remember the economy faring much better under the stewardship of previous President Donald Trump.
The White House’s silence, amid such pressing issues, has been noticeable. The Daily Caller News Foundation’s request for comment on the housing affordability crisis was met with no immediate response, adding to the frustrations of the many Americans struggling through state of the nation’s economy.
This study has been reformulated with permission from The Daily Caller News Foundation, and aims to serve as a clarion call for change and a stark reminder of how starkly housing affordability has deteriorated under the current regime.
