Special Report: Spritz explains who’s gutting Millennials.
Born after 1981? Noticed you can’t afford to buy a home or rent?
Your blood-sucking parents didn’t have this problem. So who screwed you? Hint, perhaps it’s your government? Didn’t see it coming, did you?
It started back around 2007 (you were still in high school). The Fed Gov allowed any deadbeat who wanted a house to get a mortgage (with assistance from Fannie Mae & Freddie Mac). In 2008 that real estate bubble burst. Homes weren’t overpriced, they just were owned by people who couldn’t afford them.
Of course, our politicians wouldn’t allow banks to foreclose on most of these losers and resell the homes to those who could afford them. They started whacking banks and basically killed the public and private mortgage markets. So nobody was buying a home for over three years. That put about 10 million construction workers out of business, folks who never came back. Today this nation is desperately short of tradespeople who are carpenters, plumbers, etc. A shortage of construction labor means that the cost of building a house is sky-high.
Since then, local governments, particularly in more woke Northern cities have made it hard to get permission to build new. Zoning restrictions, rent control all make for a shortage of new construction further ramping up housing prices.
Since the pandemic, people’s housing preferences trended towards suburban living where too little supply means even higher prices!
Oh, yes, high interest rates! Since 2007 our country has been on a spending spree. Government debt has ballooned from $10 trillion to $32 trillion. What happens when you spend money you don’t have? Inflation and high interest rates! That makes monthly mortgage payments beyond the budget of most young people and also increases rent (landlords have the same problem).
So if you’re wondering who screwed you, look no further than your elected officials.
Of course, you’re probably distracted by really important political issues;
Trans rights, Black Lives Matter, racial reparations, and other nonsense. Who cares about your ability to make ends meet! Eventually, it may seem attractive to elect politicians who are actually prudent with your money as a taxpayer and your future? In the meantime?
PS. The fact that most Millennials can’t afford a home doesn’t mean a housing crash like 2008 isn’t possible. The next 24 months could be very turbulent! Could housing prices dive and interest rates drop with a severe recession? Stay tuned.