A Phil Hall Op-Ed: Last Thursday’s presidential debate was, to be a charitable, a disaster for the incumbent. But from a housing standpoint, it offered a cruel but much-needed reality check on President Biden’s disconnect to the problems created by his administration’s economy.
Housing issues played a teensy role in debate’s ebb and flow, with moderator Jake Tapper acknowledging that “typical home prices have jumped more than 30%” since Biden took office.
Biden responded to that observation by feebly insisting that his administration was “going to make sure that we have reduced the price of housing. We’re going to make sure we build 2 million new units. We’re going to make sure we cap rents, so corporate greed can’t take over.”
Biden later added that his administration was “trying to provide housing for Black Americans and dealing with segregation that exists among these corporate – these corporate operations that collude to keep people out of their houses.”
Tapper never followed up with Biden to identify which corporations were guilty of greedily jacking up rents and working to keep Black households from accessing housing. But that does not matter because we already know the answer – no corporation is doing anything that even vaguely resembles what Biden claimed.
For starters, Biden’s proposed rent caps only applies to certain affordable housing units subsidized by the federal government with Low-Income Housing Tax Credit funding – and even then, the rent increase is capped at 10%, which is a pretty steep hike for the low- and moderate-income tenants in those housing complexes. Unfortunately for the majority of American households living in rental housing, the rent caps would not apply to them. Even worse, the rent caps are only a policy proposal that was belatedly introduced in March and has yet to be enacted.
In any event, rents are not rising because of “corporate greed” – they’re going up because property operating costs have become elevated since Biden took office; in many areas, tax-and-spend state and local governments are making a bad economic situation worse. Admittedly, it is not fair that these new expenses are being passed on to tenants who are dealing with their own Bidenomics stress, but this what happens when we have a president who comes into office with a 1.4% inflation rate and hemorrhages it into the 9% realm.
As for the “corporate operations” scheming to deny housing to Black Americans – what the hell is Biden talking about? Since Biden took office, there has not been a single lawsuit brought by his administration against any corporation that allegedly targeted Black Americans in violation of the Fair Housing Act. How is Biden “dealing” with something that is not happening?
What Biden is not talking about is the impact that hedge funds are having on the housing market. A 2022 Urban Institute study found that large hedge funds and other institutional investors owned roughly 574,000 single-family homes, exacerbating the shortage of available and affordable homeownership opportunities.
Last December, the End Hedge Fund Control of American Homes Act of 2023 was introduced in Congress, with the goal of banning hedge funds from owning single-family homes and require them to sell at least 10% of the total number of single-family homes they currently own to families per year over a 10-year period. After a 10-year full phase-out, the lawmakers added, hedge funds would be completely banned from owning any single-family homes.
Biden conspicuously refused to endorse the bill, and who can blame him? After all, many of his deep-pocketed donors are hedge fund executives that a previous generation used to call “limousine liberals.” Last month, Biden teeter-tottered into a multi-million-dollar fundraiser in Greenwich, Connecticut, which is home to too many hedge fund tycoons who are profiting from their vast ownership of single-family homes.
Of course, I am expecting the Biden apologists to start yelling, “Hey, what about Trump? He didn’t say a word about housing in the debate and has yet to put forth any proposals to address the housing market’s challenges.” Well, yeah, that is also correct – Trump hasn’t said one word on the subject, which is also problematic.
But then again, perhaps Trump’s silence was wiser than Biden’s babbling. After all, an earlier president – Number 16, to be precise – probably said it best: Better to remain silent and be thought a fool than to speak and to remove all doubt.
Phil Hall is editor of Weekly Real Estate News. He can be reached at [email protected].
Photo: Screenshot of President Biden from last week’s CNN presidential debate
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Amazing that any realtor could support this buffoon.
Sure, why not support the indicted criminal instead, and now from the Epstein files a confirmed paedophile…I mean, what is there not to like about a proven criminal?
How quickly you devour the CNN and MSNBC lies regarding the kangaroo court and media lies about Trump. Also, do a little independent research and see who really made numerous trips to pedifile island… hint, Trump never went. Oh and he also banned Epstein from his property decades ago. Or you can continue to believe the mainstream media that has been misleading you for years now.
Nailed it!
They are just now seeing this ?
Spot on! Thank you!
This has been on going at an increasing rate since 2008, add to that the large number of second, third and so on homes by single investors and we can look at close to 1 million homes that have been taken out of the market place, never to return. Wonder why there is a housing shortage. Most buyers first time or move up can’t compete with cash offers especially when they are near asking price just because investors are now looking at the rental payout over 30 years rather than short term. But it must be the Realtors fault, just ask DOJ!
Unethical/blatant puppeteering of frail and obviously vulnerable Biden.
Amazing that any thinking person would support such obvious exploitation.
Tragic that the self-serving opportunists around him include his closest family members.
Arrogant that the power brokers think bravado can fix this.
Makes me think of the movie “Dave” with Kevin Klein.
Dismal choice of Presidential candidates…
Trump doesn’t have to speak about housing….or anything…. He has already spoken. As a dictator, our lives as we know it will permanently change. Be careful what you wish for.
A dictator, seriously? You obviously have drunk too much Kool-Aid and are living under a rock. He wasn’t a dictator the first time around and he won’t be the 2nd time he’s president. I personally look forward to our lives changing back to where we can afford things like gas, groceries and housing!
One can easily see the tRumpiism on the writing of this article. Tell me with facts when was the last time that a GOP President did anything for the good of all Americans! The Biden Administration not only had to fix another mess/disgrace created by a corrupt, inept, stupid, billionaire without a billion in the bank while creating 15.6 million jobs in 3- and one-half years! That’s eight time more than the last three Republican presidents combined! The only thing the last three Republican presidents have in common is RECESSIONS! They, GOP create the problems and Democrats have always fixed them! Moreover, the only one that can be blamed for exporting good Americans jobs to the Asian Tigers, is Mr. Reagan! Mr. Reagan and his comrades are responsible for most of the problems we face today, (just look up Mr. Reagan’s Public Agenda). The king of lies and dictator to be not only destroyed our economy with the “cult’s” approval and cheering but gave “life” to racism among other things! One does not have to be very smart to see the difference between a leader and a cheater! Almost everyone who took part in the 4 years of Government Of Putin is either in jail or awaiting sentencing! The GOP does deliver……NOTHING good for the good of all Americans! I’m open to be presented with facts! PLEASE!
As an extreme leftist you’re so blinded who cares what you think? Why waste the time…I’ve wasted too much with this response.
NC REALTOR, just give me the facts! Since you do not have them because they do not exist under any GOP administration, your last resource is to call others that disagree with you, “an extreme Leftist”! It is only typical of folks who love being duped by the likes of the king of lies! Just stick to your guns and vote for the orange thing and let’s see what’s going to be like should there be a second round of its kingdom! Again, please give me facts otherwise, just admit to have been enchanted by the idiot’s enchanter!
I must have missed it, but I do not recall hearing anything form Trump during his “Gish gallops” about housing. I was more concerned with what Trump said (lie after lie) than what Biden failed to say. Trump took office on the heels of Obama’s economy. He saw 100 months of continuous U.S. monthly job gains end in February 2019 as the economy slowed, before the pandemic. The COVID-19 pandemic all but shut down the economy and depressed prices across the board. For an interesting assessment of Trump’s economy see https://apnews.com/article/trump-economy-biden-election-president-e3a153c9b0c615ea6e0f2afb91cdc785 – and- https://www.factcheck.org/2021/https://x.com/AshaRangappa_/status/1807837356936122433/photo/110/trumps-final-numbers.