Why Homes Are No Longer Affordable

The “Affordability Crisis” continues to dominate headlines and stump speeches, and the White House’s latest campaign against the Fed is a misguided response to bring prices down via expansionary monetary policy. Everyone in Washington, D.C. seems to have forgotten that this monetary policy is what caused the last decade of inflation, with the housing sector in particular suffering from rampant central planning.

The following article was originally published by the Mises Institute. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.

Homeownership—once a hallmark of the American dream—has drifted further and further out of reach for the average American. More than half of US renters believe they’ll never own a home, and 80 percent of Americans say homeownership is slipping out of reach. Meanwhile, the average age of a first-time buyer has jumped from 33 to 40 in just five years, and the average buyer overall has reached a record 59 years old. How did it get so bad, and why do homes feel so out of reach?

The answer to this question can be summarized by four simple but devastatingly sad points: