OPINION: This article may contain commentary which reflects the author’s opinion.
The cost of buying a home continues to skyrocket under President Biden, and “Bidenomics” appears to be making the situation worse, according to some of the most recent economic data.
For instance, the Average American now needs to earn an eye-watering $115,000 per year just to be able to afford a house, up from $99,342 last year for a median-sized home, the UK’s Daily Mail reported.
“Latest data from real estate company Redfin has revealed that prospective homebuyers need to earn a salary of $114,627 – up 15 percent from a year ago and up more than 50 percent since the start of the pandemic,” the outlet said. “This is about $40,000 more than the income of a typical household. The average worker’s salary was around $75,000 in 2022 – the most recent US Census Bureau data available.”
While hourly wages have gone up around 5 percent over the past year, that isn’t nearly enough to keep pace with the rapidly rising cost of housing, the availability of which is declining significantly as well.
“The typical US home sold for about $420,000 in August, up 3 percent year over year and about $12,000 shy of the all-time high hit in mid-2022, according to Redfin,” the Daily Mail noted, citing the data.
In August 2012, Americans needed to earn less than $52,000 annually to be able to afford a median-priced home. “Median” is based on around 30 percent of annual income, RedFin notes.
Meanwhile, in addition to sky-high housing costs, interest rates in the Bidenomics era have skyrocketed as well and now average around 7.7 percent. The Federal Reserve began raising rates last year to combat historically high inflation rates as Biden and a Democrat-led Congress increased federal spending by trillions, which many economists said contributed to inflationary pressure.
“In a homebuyer’s ideal world, rising mortgage rates would push demand and home prices down enough to make up for high interest payments,” Redfin economics research lead Chen Zhao said, per the Daily Mail.
“But that’s not what’s happening now: Although new listings are ticking up slightly, inventory is still near record lows as homeowners hang onto their low mortgage rates–and that’s propping up prices,” she said, adding: “Buyers – particularly first-timers – who are committed to getting into a home now should think outside the box.”
“Consider a condo or townhouse, which are less expensive than a single-family home, and/or consider moving to a more affordable part of the country or a more affordable suburb,” Zhao noted.
As home prices and interest rates go off the charts, survey after survey shows that the economy and inflation are among voters’ top concerns heading into the 2024 elections, and that does not bode well for Biden.
Earlier this month, an MSNBC panel fretted over President Joe Biden’s tanking approval ratings as a growing number of Americans from both parties are blaming him and his policies for still-high inflation that has led to higher food and gas prices, as well as the overall state of the U.S. economy.
“Morning Joe” co-host Joe Scarborough expressed shock at the “unbelievable” polls, adding that Republicans were “absolutely bashing” Democrats when it comes to such crucial voter issues.
“In fact, Gallup had a poll a few days ago, where they reported the largest gap between Republicans and Democrats since they started taking these polls,” he noted.
MSNBC analyst and “Way Too Early” host Jonathan Lemire responded by saying that the polls should be “big warning signs” for Biden and the Democratic Party in general.
Fox News added:
He pointed to a Marquette University poll out this week which found former President Donald Trump had a 23- to 24-point lead with voters on handling inflation, the economy and the border. Trump also held a 19-point lead over President Biden in voters’ confidence in the candidate creating jobs.
These are “huge, huge numbers,” Lemire admitted. While Democrats held clear leads on climate change and abortion, elections are often decided on the economy, he argued. “These are big warning signs here,” he said.