Fresh reports reveal that Joe Biden is in an intense struggle behind closed doors, grappling with the housing crisis and finding ways to solve it. Here’s the full story.
Biden’s Battle
The issue of skyrocketing rent prices has become a significant concern for President Joe Biden, who is worried about its impact on the economy and, consequently, his reelection campaign.
President Biden’s Top Concern
Biden has been vocal both in private discussions and public addresses about the urgent need to address the housing crisis.
Biden’s Urgent Push for Solutions
Behind closed doors, he has pressed his senior staff for smart solutions to make housing more accessible and affordable, with a focus on reducing mortgage rates and rental costs.
Voter Concerns
Allegedly, Biden is worried about the frequent complaints he has been hearing from voters during his current election campaign about the challenges of affording a home.
One senior official noted that Biden is worried about the lack of housing supply and super high-interest rates.
Addressing Housing Affordability
This focus on housing affordability is reported to be a key issue Biden wants to solve, as he knows it represents a big vulnerability in his team’s efforts to combat inflation and boost the happiness of his voter base.
Housing Expenses at the Forefront
With housing expenses now the largest contributor to inflation, the White House is intensifying its efforts to address the issue, recognizing its potential impact on Biden’s economic record and reelection prospects.
Long-Term Solutions
Recently proposed measures include expanded tax credits and funding for affordable housing construction – laid out in his 2025 budget – although these initiatives are seen as long-term solutions rather than immediate remedies.
Congressional Hurdles
There’s also the issue that, in an election year with a Republican-controlled House, Biden’s housing legislation will struggle to pass Congress.
Complex Beast
While Biden is working on solving this issue, it’s a complex beast that will take a lot of work to tackle.
Biden wants to ease the working class’s financial burden, but years of under-building, as well as huge demand for housing – in part generated through the pandemic – have led to a housing crisis and a rental crisis, with affordable housing a pipe dream for many Americans.
Rental Crisis
These issues are having a huge effect on those from lower-income backgrounds and younger Americans who are struggling to get on the housing ladder.
The housing market has a knock-on effect on the rental market, which has seen rental prices increase by almost 30% in the past four years.
Immediate Remedies vs. Long-Term Solutions
Biden is making housing a key issue in his reelection campaign, but the reality is that this is an issue that could take years to solve – and that could be years of intense, concentrated effort.
This means that in the short term, before November’s battle, Biden is left with little options.
High Mortgage Rates
Today’s mortgage rates are the highest they’ve been in 15 years, and according to Zillow, the average monthly payment for homes bought with 5% down has doubled in the last three years.
Housing Availability Drop
People are holding on to their houses because they have favorable rates, don’t want to sell, and end up paying hundreds of dollars more, which is causing housing availability to drop and making places impossible for first-time buyers to afford.
National Crisis
Years ago, housing was seen as a local issue, but as things have become worse, it’s now a nationwide crisis.
Housing Struggles Across the Board
Older people are stuck and unable to sell their homes, and younger people are stuck and unable to afford a home.
Most young people have given up on the idea of buying a house or, in some cases, are buying homes with groups of friends just so they have a roof over their heads.
Biden’s Poll Numbers and Economy Perception
All of these issues are negatively affecting Biden’s poll numbers and people’s perception of the economy—which, according to economists, is actually performing well, although many average citizens would be hard pressed to agree with that.
Limited Actions
While Biden has taken executive actions to support the housing market during the pandemic, he’s limited by what he can do.
Republican Opposition
Republicans have attacked most of his housing policies and blamed them for the current sky-high mortgage rates, while presidential hopeful Donald Trump is yet to reveal his game plan for solving the housing crisis.
Biden’s Strategy
According to White House insiders, Biden hopes the Fed will lower interest rates later this year, which could put the wind back in his sails.
However, with recent reports of an increase in inflation between January and February, reduced rates may come too late.
An Uphill Battle?
If that’s the case, Biden may have to pull something amazing off to win lost voters back to his side.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
