Commentary
Following World War II, American policymakers prioritized promoting home ownership across a wide spectrum of the population. This initiative was largely successful, with the ideal of happy families residing in comfortable homes, supported by stable employment and owning two cars, becoming a symbol of prosperity and an emblem of the American dream worldwide.
Fast forward to the present day, and this dream seems shattered as the majority of people struggle to even consider owning a home, even with dual incomes. Escalating prices indicate a concerning trend, with little prospect of a decrease in sight. Unlike the housing bubble of 2008, current inflation seems to be driving prices upward, much to the reluctance of existing homeowners to accept any decline in property value.
Given this challenging scenario, many individuals are exploring alternative ways to invest their liquid assets rather than channeling them into homeownership.
In light of recent discussions surrounding potential solutions to the housing crisis, several proposals have been put forth, yet none seem particularly promising.
One common suggestion is for increased intervention by the Federal Reserve. However, it’s important to note that the Fed’s control is limited to influencing rates charged to member banks, which may not yield the desired outcomes and can inadvertently exacerbate existing issues.
Addressing the heart of the problem is crucial.
While the reduction or abolition of property taxes is a valid suggestion, it falls under the jurisdiction of states and local governments, not the federal government. Lowering property taxes can lead to decreased revenue for essential services like education and crime prevention, potentially driving residents away instead of attracting them. State-level vouchers for private schooling may offer a promising solution, but they are somewhat removed from the core issue at hand.
Federal regulations on development have become a significant barrier to building and expanding the housing supply. The current requirements, such as green-energy compliance standards, make it challenging for individuals to construct new homes. Eliminating these regulations, including defunding the Department of Housing and Urban Development, could alleviate some of these challenges. This department has long been criticized for favoring large developers at the expense of taxpayers.
While various solutions can contribute to addressing the housing crisis, there is no quick fix to restore the universal dream of homeownership from the 1950s. Today, many young people prefer the flexibility of renting over the financial burdens associated with owning property. Focusing on reducing regulatory costs, addressing inflation, and improving schooling options may prove more effective in resolving the housing issues than direct market interventions.
Opinions expressed in this article are solely those of the author and do not necessarily represent the views of The Epoch Times.
