Under Biden, the dream of homeownership is becoming an impossible dream for many in the middle class. Worse yet, young families that CAN afford a new home, can only buy a house that is half the price tag of homes that were within their financial reach three years ago.
When Trump left office, the typical family could afford to buy a home valued at $725,000. Now that same median-income family can only afford a home priced $365,000 – according to an NBC News analysis based on federal housing data.
The monthly payment on a 30-year mortgage has ballooned from $1,403 in 2020 to $2,441 now. This means over the life of a mortgage, the extra interest payments due to higher interest rates under Biden will well exceed $300,000.
Here’s another depressing way to look at how Biden has wrecked housing affordability. The median-income home buyer can’t afford to buy a median-value home.
The major culprit is the escalation of mortgage interest rates from a low of 2.68% in Trump’s last year in office, to 7.8% some 32 months later.
Something has to give here. Either housing values are going to plummet or homeownership rates in America are going to continue to tank.
But if you listen to Biden talk about the economy, you’d think these were the days of wine and roses for the middle class.