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Home – Political News – Housing Affordability Crisis Results From ‘Too Much Socialism,’ Not Too Little: Report

Housing Affordability Crisis Results From ‘Too Much Socialism,’ Not Too Little: Report

America’s housing affordability crisis isn’t a result of too little government intervention or socialism, but a tragic consequence of massive federal intervention gone awry, a new Heritage Foundation report argues.

“When it comes to housing, our problem isn’t a lack of socialism but too much socialism,” John Gibbs, Heritage’s economics director, told the Daily Signal. “Heavy government involvement in mortgages promised to make homes more accessible but instead made them more expensive.”

Gibbs released a report Wednesday noting that despite heavy federal intervention aimed at increasing homeownership, rates have remained essentially stable since the 1960s. According to the Federal Reserve Bank of St. Louis, the homeownership rate in the U.S. stood at approximately 62-63% in the early 1960s and remains at approximately 65%.

“We do not make homes affordable by making debt affordable,” Gibbs explained. “We make homes affordable by reducing the policies that inflate home prices in the first place.” 

“Federal mortgage policy has become a $10 trillion experiment in boosting housing demand,” he added. “The evidence suggests much of the result has been higher prices rather than higher ownership.” 

Many housing economists attribute the housing affordability crisis to local zoning restrictions, environmental reviews,........

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