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