Why does buying a home feel more out of reach than ever? According to Blaze Media co-founder Glenn Beck, the answer isn’t corporate greed, mysterious market manipulation, or some hidden conspiracy theory. It’s basic economics and government policy.
Citing new research from the Federal Reserve Bank of Dallas and data from the National Association of Home Builders, Beck argues that America’s housing affordability crisis stems from a collision of rising demand and artificially constrained supply.
“Thirty percent of the increase in U.S. home prices from '21 to '24 along with 20% of the rise in rent prices comes from just bringing in seven, 10, 15 million people and just adding them in,” Glenn explains.
“Today, our home, the typical American house, runs closer to five times what a family earns in a year,” he adds.
Back in March, economists at the Federal Reserve Bank in Dallas ran the numbers on what seven million illegal border crossings under the Biden administration did to the local housing market.
In Dallas, it put “roughly 30% of the total run-up in home prices and about 20% of the run-up in rents.”
“Every 1% increase in unauthorized workers relative to the local workforce pushed the home price up 2.2%. And rents up 1.4%. So you want to know why we’re having a hard time buying houses?” he asks, answering, “It’s because our local governments along with the federal and state government are completely out of control with regulation, and our federal government just opened up the borders.”
“Now, why isn’t that being explained to the American people?” he asks.
“It’s not the builders. It’s not the people selling the houses. It’s the government that is the problem,” he says.
And while the Biden administration spent four years adding millions of people to the demand side, local and federal governments made it "slower and more expensive to add anything to the supply side."
“There’s no mystery here. There’s no shadowy cartel. There’s no Jew behind the corner. It’s a bathtub with the tap wide open and a towel that is stuffed in the drain,” Glenn explains.
“Which means the fix should be just as simple. And there are three fixes,” he says.
“One, don’t add people to the country faster than you can add roofs to it. ... Two, make it legal to build a cheap house. ... Three, stop borrowing money you didn’t have because the deficit sets the interest rate and the interest rate sets the mortgage,” he continues.
“I don’t know why we don’t do this.”
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[H/T Blaze Media]
