Sen. JD Vance accepted the Republican Party’s nomination for vice president with an acknowledgment of the challenges facing the U.S. housing market. However, the Ohio senator focused on what he perceived to be the roots of the problems but did not offer strategies for addressing a solution.
“Months ago, I heard some young family member observe that their parents’ generation — the baby boomers — could afford to buy a home when they first entered the work force. ‘But I don’t know,’ this person observed, ‘if I’ll ever be able to afford a home,’” Vance said. “The absurd cost of housing is the result of so many failures. And it reveals so much about what’s broken in Washington. I can tell you exactly how it happened: Wall Street barons crashed the economy and American builders went out of business. As tradesmen scrambled for jobs, houses stopped being built.”
Vance added that “the lack of good jobs, of course, led to stagnant wages. And then the Democrats flooded this country with millions of illegal aliens. So, citizens had to compete with people who shouldn’t even be here for precious housing. Joe Biden’s inflation crisis, my friends, is really an affordability crisis.”
Vance has previously cited the influx of illegal immigrants as an obstacle to ensuring wider housing affordability. To date, however, neither Vance nor former President Donald Trump – who is accepting his party’s presidential nomination – has provided specific ideas to reverse the evaporation of housing affordability.
Photo: Team JD Vance
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Politicians are great at blaming the other party but having real solutions to any problem is a rarity.
This is such bull jive!!!
The current administration has not even acknowledged that these problems do indeed exist, mainly because their terrible policies are directly responsible. I have heard of no specific or even indirect indications of fixing any from the current administration. Have you? At least Trump/Vance both agree on removing illegal aliens from being leeches on society and driving down wages, while taxpayers bear the burden. This is not a duplicate comment.
Interestingly, Biden is deporting more people in 2024 than Trump did any year he was in office. Weird!
If that is true that Biden is deporting more people than Trump ever did it is only, because he is the cost of the problem that the illegals are here in the first place.
If you truly believe that Trump has offered no solutions then you clearly have not been paying any attention to what he has said. MASS DEPORTATION OF THE ILLEGAL IMMIGRANTS IS A HUGE CHUNK OF THE SOLUTION TO THE HOUSING PROBLEMS AND MANY OF THE OTHER ECONOMIC PROBLEMS THIS COUNTRY FACES! Pay attention before you criticize!
What makes you say that? What are the stats on undocumented immigrants buying homes?
It is disappointing to read such a sophomoric response to such a complex issue. Housing costs are NOT due to “millions of illegal immigrants”, or of “so many failures.” This, coupled with blaming one political party or the other, along with blaming the great nameless entities; Wall Street barons, a broken economy, the Government, etc., etc.
The reality is, just as there are housing difficulties right now in other countries around the world, there are housing difficulties here, at home. And like in other countries, not every state in our country has the same issues. Why? This is not a homogeneous set of ‘issues’. Different areas of our country employ different major components for construction (wood, steel, concrete, etc.) – have different structural requirements due to the different environments (hurricanes, tornadoes, earthquakes, fires) specific to those different areas, and there are different constraints regarding available land in different regions.
There is also the cost of money that changes with our economy. The ‘everyman’ who enjoys earning a higher interest on their money that is invested in some form of a savings account, will also decry the same higher interest on a car or home loan. This is a function of the generally capitalist economy enjoyed here and in most other industrialized countries around the world, including, to some extent, communist countries such as China, Vietnam, and even Russia.
Our housing crisis might appear to be the same in every state of our country, but that is not so. Yes, the Federal government does exercise some control in a ‘global’ sense, but all housing is ultimately local. Locally governed, locally designed for that area’s specific life-safety needs, land development needs, etc.
It is very disingenuous to use a 12-inch-wide paint brush to try to color a paint by numbers canvas when describing what our housing issues are, especially for a country so vast in area and so unique in individual locations.
The day we can keep politics out of the ‘blame game’ for our housing problems will be the day that we can actually start creating realistic solutions for the macro housing issues and the micro housing issues.
Thank you for your critical thinking; seems to be a lost art!
Starting somewhere is better than doing nothing. Where do you proclaim the millions of illegal immigrants are being housed and if those housing needs weren’t being utilized, perhaps the demand wouldn’t be so high. We have a higher demand than we have in supply, but where do we find more land to build a higher supply. We need to start somewhere and controlling our resources is likely the best answer.
Very elaborate. But it comes dow to one simple question, and only one question: Are you better off after the last 3 years or after the last guys first 3 years? If people answer honestly then 90% of us would answer the same way.
Thank you Mark Lotterman, finally someone who is articulate. This is a multifaceted and complex issue. It’s much too easy to play the blame game. That’s what politicians do to convince you. Blame and promise. Yet year after year the more things change the more they remain the same.
Well said!!
A very good take!
Great response. As a long standing real estate developer, I have a unique integrated solution for a major part of the problem which I will share with you if you send me your contact information.
People’s feelings on this topic are often directly related to their own experience. It is difficult to understand the plight of others in this respect if you live in an area that has affordable housing. It is hard to comprehend, unless you have experienced it.
I live in North Carolina and work in the real estate industry and I can speak to how it is in the South. Housing is extremely expensive here in the South and most young folks–even those with good jobs–struggle to purchase a home or just completely give up and pay exorbitant rents. Young folks aren’t the only ones. It seems a fair characterization to say that housing costs are burdensome for most people, right now. Insurance, taxes, and utilities have skyrocketed. Regulations are to blame for much of these increases in costs.
Illegal aliens truly impact the affordability of lower and middle-class housing, as illegal aliens typically will borrow from one another and pool their money for a home purchase, such that they have cash to pay for a house. Compare that with the normal American citizen, who takes the traditional approach of institutional financing. A seller must choose between the illegal alien, who asks fewer questions and doesn’t require an appraisal or inspection and who can afford more (because they don’t have the loan costs and don’t pay income and other taxes) vs. the American citizen who has a lender that uses their appraiser to hassle the seller and causes delays and other problems, many of which are directly related to regulatory hurdles. It’s hard to blame the seller who wants nothing to do with a buyer who is backed by a finicky institutional lender who must follow ultra-expensive regulations.
Interest rates affect the affordability, but I don’t consider the current interest rates cost-prohibitive. We just all quickly got used to rates that were unusually and unsustainably low. If you look at historical rates, it is unreasonable for us to call the current rate environment extremely high because it simply isn’t.
I don’t know enough about wages, but inflation is obviously a major problem. Our Executive and Legislative branches are directly responsible for continuing to give money away keep printing and devaluing the dollar.
All-in-all, it isn’t unreasonable for us to lay the housing cost problem at the feet of the President and his cronies, as some of the factors in the housing costs are items the President directly controls, like border enforcement, and he has great influence and direct involvement in the other factors.
I believe that the 2008 housing crash was a downward spiral. For 10 years there was barely any new construction being built and alongside of that we began to see interest rates continuing at an all time low for years. The last 4 years homes flew off the market with the constant escalation of prices. Definitely have a severe supply and demand issue on our hands. A balanced market has 6 months worth of inventory but in my area we are barely in the 2 month range. The recovery is going to be a long struggle ahead!
The corporations, not for profits and the LLC’s I believe are to blame.
They came in with cash offers beating out prospective home buyers who had needed to use a financial institution to borrow.
It kept increasing the past 4 years as offers now needed were way over asking price in order to be able to buy property.
Also, don’t forget:
We are all aliens… look up all the changes made to the constitution/the amendments
We are all “A lien” to the establishment and traded on the stock markets…
BUYING A HOME REQUIRES SAVING MONEY FOR A DOWN PAYMENT. YOUNG PEOPLE TODAY, AND MOST COUPLES WANT TO OWN A HOME IMMEDIATELY WITH NO EQUITY. WHO IS GOING TO LEND YOU HUNDRED’S OF THOUSANDS OF DOLLARS FOR 30 YEARS WITH NO DOWN PAYMENT. ALSO, WHEN IF THINGS GET ROUGH YOU CAN JUST WALK AWAY.
Home prices are set by supply and demand
Blaming illegal immigrants on housing costs and describing them as leeches is just a political gimmick.
The main drivers of cost are land availability and cost of construction.
Land availability is controlled locally and most cities like to restrict housing construction as much as possible
Constructions costs would be much higher if it wasn’t for the millions of immigrants that build them.
Barbara is very accurate and knowledgeable of the real estate market.
American Greed! After 2010 when many lost homes to foreclosures the investors grabbed all the foreclosures for pennies on the dollar. Then prices started to rise and rise and rise. It was not a normal cycle for real estate. Greed started to set in as companies were paying huge salaries and the upper middle class could afford these outrageous prices. My fellow RE agents and myself, said this could not be sustained. Yet prices continued to rise. Then interest rates at 21/2 percent kept those prices going up. I thought my 7% VA loan was a great deal in 1982. The Trump/Vance team will have solutions but first things first. There is so much that needs to be done and their priority is keeping us safe and stop the drugs from killing our kids and keeping us out of war. Why doesn’t the author of this article offer some solutions if they are so smart.
To me this is real simple: Had the best 3 1/2 year stretch as a realtor when Trump was in office. Thats enough for me to vote for him!!!
Amen to that!
Remember, he just said he is a hillbilly. I believe him. He’s playing to his base instead of offering solutions. He’s blaming people with money for crashing the market, and yet, people with money are supporting him. He is offering no solutions to people with little or no money. And yet, people with little or no money cheer him on and then vote for him.
He wants to round up the immigrants and yet his wife’s parents are immigrants.
His running mate insinuates white nationalism and yet no one pays attention to the fact his son-in-law is Jewish.
Most people lack an understand of a simple concept. What goes around, comes around.
Critical thinking is sorely absent from him, his partner and his supporters.
We are pretty much getting what we deserve.
Every school should be required to teach Martin Niemoller’s poem.
First they came for the socialists, and I did not speak out—because I was not a socialist.
Then they came for the trade unionists, and I did not speak out—because I was not a trade unionist.
Then they came for the Jews, and I did not speak out—because I was not a Jew.
Then they came for me—and there was no one left to speak for me.
—Martin Niemöller
Like I said, we are getting what we deserve. And yes, I do believe he is a hillbilly.
Really? No solutions?
Haven’t you been paying attention?
Try these solutions: returning to a robust economy, lowering interest rates, stopping runaway inflation, deregulation, putting tariffs on imports instead of taxes on Americans and American businesses – the list is endless.
Finally someone who realizes real estate is 12% (21% if you included related industries) of the GDP.
I’d say those are a few solutions.
Thank you Lou! Also Bringing the auto manufacturing industry back to US. Drill, Drill, Drill he said countless times last night. Stop relying on foreign energy. Give the Americans their jobs back, who also compete for those same jobs, by deporting illegal immigrants…not those who come here legally. Give everyone who currently relies on Biden’s handouts (subsidized housing, food stamps, Medicade, free transportation, etc) the requirement and means to GET BACK TO WORK! Our spending will naturally be cut because illegal immigrants will no longer be living off American taxpayer dollars and more lower income Americans will be required to get back to work. Fuel the economy!!!!!! Americans need to make more American products which too will drive down inflation. He’ll cut our taxes AGAIN and instead replace with tariffs on foreign products! I have to assume you may have fallen asleep last night on the East Coast and did not stay up to hear the SOLUTIONS at the DNC convention.
And to Mike and Lou……as a 10 year Realtor coming from the private sector….Trumps years in office were by far and wide my best years….THE ECONOMY WAS PROPERLY FULED, our boarders were protected and no one feared to MESS WITH TRUMP.
When you put more money back into the pockets of American families and you increase their consumer confidence (by eliminating the threat of war, seeing inflation drop at pump and grocery store), along with reducing interest rates (even slightly) you will in turn see more homes go up for sale, buyers will be in a better position to save for a down payment and with increased inventory, housing prices will stabilize! Yes the correction period takes time…but it will only take longer under the Biden Administration. Only true change will start the correction process the American family needs NOW.
Thank you, Mark Lotterman and Stephen Lombardi for your thoughtful comments on this article! One forgets that Mr. Reagan was the one who gave birth to the “tigers of Asia”! His argument was that we would ship all the good paying jobs to Asia and we as the consumers would get those goods for a fraction of the cost! We all got fooled and pay now a higher price for goods all the while not having those well-paid jobs! Another GOP creation: “de-regulation” – as you diminish competition, prices go, you guessed correctly, “higher”! Candidates for the GOP not only talk nonsense, but do not give any specifics on what they’d do if elected other than destroy our US and our Constitution! In my community where Democrats have full control of town board, town justice court, town trustees, and any other political position in town, have developed a system where one in need of housing is favored: for every real estate transaction there’s a half point added to the purchase price. That money goes into a fund where one can apply for a down payment and pay back in the course of the life of the mortgage! Creative thinking! Also, for the last 25 plus years, whenever a property comes in the market for sale, if the price is right, I advise the housing authority to buy and lease it back to a low-income family! Lastly, the town builds affordable housing through partnerships and sell to low-income families for an extremely low price! The buyer buys the structure, the town (taxpayers) own the land and when it is time to sell that house, it must go to a low-income family! Anytime the GOP had control of our town, they never built one single affordable unit or came up with any idea to help the neediest ones. They always had a “walk on resolution” where they’d allow a 7-11 store or anything else that required public participation and always argued, “we’re pro-businesses”, always forgetting those who voted for them, often, the neediest ones! As for “illegals”, unless someone has a RSVP sent by my ancestors inviting them to come over to steal my ancestor’s land and kill my people, they’re here “illegally”! And without papers, no “illegal” will be able to buy anything in the US! Please LOVE our US and not a convicted felon and a hillbilly who used the system to get ahead and now wants to take that away from the ones who need the most and out of ignorance always vote for them, GOP! May The Lord protect US and free US from those who offers US nothing but promises “destruction” starting on day one!