Americans have seen housing prices increase 31 percent in the last 3½ years, and 30-year fixed mortgage rates have shot up from 2.8 percent to 7.1 percent. Consequently, the nation faces a housing affordability crisis. The median monthly payment for a homeowner has almost doubled: From principal and interest payments of $1,055 at the end of 2020 to $2,040 by Feb 2024. At the same time, since Jan 2021, full-time workers have seen their income barely keep pace with inflation.
The main culprit of the housing affordability problem is a bevy of regulations in nearly all well-populated states and localities that serve to restrict housing supply. Unable to effectively rectify these problems, the Biden Administration has instead resorted to token actions intended to placate the American electorate without addressing the underlying problem. Case in point are the recent actions taken by the administration to weaken the protection homeowners get from title insurance.
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