Robert F. Kennedy Jr. addressed the challenges facing the housing market, with the candidate for the Democratic presidential nomination offering a plan to expand access to homeownership with a new program.
In a video posted to his social media pages, Kennedy acknowledged the spike in home prices since the pandemic and called out three major financial institutions – Black Rock, State Street and Vanguard – for going on a spending spree in buying up single-family houses, often by outbidding individuals trying to acquire residential property.
“If they stay on the current trajectory, they will own 60% of this country’s-single family homes by 2030,” Kennedy said.
To combat these players, Kennedy said that if he was president he would “try and change the tax code and make it unprofitable for those companies to compete against your children for housing.” He also outlined a plan that will slash the currently elevated costs carried by newer homebuyers.
“I’m going to make a mortgage payment to Americans at 3% interest, and I’m going to do that without raising the debt,” he continued.
Kennedy offered a scenario where a borrower with “a rich uncle” who co-signs a mortgage, noting the borrower would get the mortgage “very cheap because the bank is basing interest rates on his credit score rather than yours.” In his plan, Kennedy will “give everybody a rich uncle” – in this case, Uncle Sam, who will be the co-signer on a “new class of mortgages” which would result in lowering the cost of mortgages by $1,000 a month.
To finance these mortgages said this will occur by “selling tax-free bonds on the open market [that] won’t be financed with federal tax dollars and contribute to this incredible debt. It will only be available to first-time homebuyers who will live in that community.” He added that this initiative would prioritize “supporting the teachers because we need to create housing for teachers to keep the best teachers in our schools.”
Photo courtesy of Kennedy’s Instagram page
;
I like the idea. Hope it flies.
Why doesn’t everyone get the “rich uncle”? So politicians get to decide who gets the deal?? teachers- yes, nurses-no, first time buyers-yes, second time-no, this color -yes-this color-no, this political party , etc…. If you’re handing out free candy, give it to everyone. Stop discriminating in all ways to try to stop discrimination
Well said.
It looks good at first read but now they want taxpayers to bail out college funds and look what that government program did to college cost. We can’t afford housing now this will just make housing cost higher and people that pay their bills will have to bail out others. I do believe there should be a fix to those three companies buying up 60% of housing.
That’s right. Our government needs to stop choosing the winners and loosers. Quit buying votes.
This man is as dangerous to America as his father and Uncle were. They have all been anti-free market and pro-government intrusion and control. Government control of mortgage rates will eliminate any mortgage lending company as they can make more on treasuries or other bonds than the artificially depressed rate that the government dictates. Then when that happens the next step is actual government financing with more government debt to fund it. This is “sound good” economics that only leads to more disasterous outcomes.
You make some good points, I am intrigued by other proposals he’s made, like breaking the collusion between large drug companies and government regulators. I’m worried about the future, and I’m casting about for ideas and solutions, wherever they may come from.
There are other ways to help young home owners. One way is to increase the mortgage term from 30 years to 50 years, which reduces the monthly payments and allows people to pay down principal if and when they have extra funds. This is how the 2008/2009 foreclosure crisis could have been avoided.
Good point. People are living longer. We need new ideas, and I’ll take them any where they come from
I’m a realtor, and I love the thought. However, it’s not only teachers who need housing. I deal with first time homebuyers seniors and veterans, and they all need assistance.
Thank you, Mr. Kennedy!
I like this guy. This is the on person addressing the massive investor buy in of housing. Perfect timing around the pandemic lockdowns
Part of the reason housing prices have spiked in my area is lack of supply. This proposal doesn’t address those issues at all. Existing homeowners would have even less reason to list their home, when they will have to compete with subsidized first time buyers on the purchase of their next home.
Furthermore, wouldn’t adding more purchasing power to the system cause prices to rise further?
delusional
Didn’t Charlie Rangel try to make it where the government would subsidize loans for those that couldn’t qualify on their own and how did that turn out record foreclosures screwed up the housing industry and affected the economy. People have to be able to afford the home which means they need jobs which means the answer is fix the economy so people can get jobs That I believe is another mistake
If the government is offering low interest real estate money then offer it to all real estate borrowers that QUALIFY FINANCIALLY. The economy will improve as borrowers will be creative as to how they use the money for real estate.,,,,cgb
Some good thoughts here. First we need to put a hault to foreign investors (like China) and to those companies excessively buying single family homes. Then reduce the interest rate. When you do that, home owners will be able to afford to move up allowing first time buyers to purchase.