BIDEN WILL INCREASE THE COST OF HOUSING

BIDEN WILL INCREASE HOUSING COST

By: Derek Varsalona

I applaud President Biden for trying to decrease the housing cost in America.  Housing is expensive.  But President Biden is going about this the wrong way and is actually going to increase the housing cost in America with a government overreach by providing government grants to people who need housing.  The fact of the matter is whenever the government gets involved they increase the cost of the product that they are actually trying to decrease.

Vice President Kamala Harris has outlined a national housing initiative intended to decrease housing costs known as the Pathways to Removing Obstacles in Housing.  The fact of the matter is when it comes to housing it is usually the government that provides the biggest barrier to making affordable housing.  The fact of the matter with this initiative is going to get in the way of affordable housing.  The government-provided grants are going to increase the housing cost since the pricing of the materials to make the housing is going to go up and increase the inflation in not only the housing market but more importantly the price of the products to build the housing will increase. 

Basically, the housing comes down to the value of the land that it is built on.  If the land is valuable the housing is going to be valuable.  That land value increases based on activity in the region how many job opportunities are there, how much activity is there for the lifestyle, and yes how much crime is in the area.  Those are not the only factors but in my book, those are major factors in the cost of housing in the area.

The government spending is going to increase the amount of money that the land and the house are worth.  The government is the poison.  It is not going to decrease the cost of housing but the very fact that the government is involved in trying to create affordable housing is going to increase the amount the house is worth.

If you want to decrease the price of housing the first thing is to supply the market with more houses.  The second thing is to get the government out of the way.  As always comments accepted.

Biden will increase Housing Cost

Source: Vice President Kamala Harris. " Fact Sheet: Vice President Kamala Harris Announces First-of-its-kind Funding to Lower Housing Cost by Reducing Barriers to Build More Homes." Whitehouse.gov Washington, DC: June 26, 2024.

https://www.whitehouse.gov/briefing-room/statements-releases/2024/06/26/fact-sheet-vice-president-harris-announces-first-of-its-kind-funding-to-lower-housing-costs-by-reducing-barriers-to-building-more-homes/