#5 - the American housing crisis

The American housing crisis is a complex and multifaceted issue that has been plaguing the country for decades. It is a problem that has both immediate and long-term consequences, and it is one that has been the subject of much debate and discussion among policy makers, economists, and the general public. In this essay, we will explore the past, present, and future of the American housing crisis, highlighting the optimistic forecasts and pessimistic outlooks on its future, as well as the possible opportunities and drawbacks. We will also take a look at some of the notable champions and critics of the issue, and explore the various perspectives that have been put forth on this important topic.

The Past:

The American housing crisis has its roots in a number of factors that have been brewing for many years. One of the main drivers of the crisis has been the rising cost of housing, which has outpaced the growth of wages and salaries in many parts of the country. This has made it increasingly difficult for many Americans to afford to buy a home or even to rent one, and has led to a growing gap between the rich and the poor.

Another major contributor to the housing crisis has been the subprime mortgage crisis, which began in the early 2000s and was a major factor in the financial crisis of 2008. Subprime mortgages were loans that were made to borrowers with poor credit, and were often characterized by high interest rates and risky terms. When the housing market began to decline in 2007, many of these borrowers were unable to keep up with their mortgage payments, and this led to a wave of foreclosures and a severe decline in home values.

The Present:

Today, the American housing crisis is still a major problem, and one that continues to affect millions of Americans. Despite some improvements in the economy and the housing market, many Americans are still struggling to afford a place to live, and there are still many neighborhoods and communities that are plagued by poverty and blight.

One of the main challenges facing the housing market today is the lack of affordable housing. According to a report by the National Low Income Housing Coalition, there is a shortage of 7.4 million affordable and available rental homes for extremely low income renters, and this number is expected to grow in the coming years. This lack of affordable housing is a major problem for many Americans, and it is one that is likely to continue to affect the housing market for years to come.

Another major issue facing the housing market today is the lack of access to credit. Many Americans, particularly those with low incomes or poor credit, are finding it difficult to obtain a mortgage or a home equity loan. This is due in part to the stricter lending standards that have been put in place in the wake of the subprime mortgage crisis, and it is a problem that is likely to continue to affect the housing market in the future.

The Future:

When it comes to the future of the American housing crisis, there are both optimistic forecasts and pessimistic outlooks. On the one hand, some experts believe that the housing market will continue to recover, and that home values will continue to rise. They argue that the economy is improving and that more Americans are finding jobs, which will lead to more demand for housing. They also point to the fact that interest rates are low, which makes it easier for Americans to afford a mortgage.

On the other hand, there are those who are more pessimistic about the future of the housing market. They argue that the economy is still fragile, and that there is still a lot of uncertainty about what the future holds. They also point to the fact that there is still a lot of overhang from the subprime mortgage crisis, and that there are still many neighborhoods and communities that continue to be affected by poverty and blight. They believe that the housing market is likely to continue to be a major problem for many Americans for the foreseeable future.

One of the main opportunities for addressing the housing crisis in the future is through government intervention. Policy makers and lawmakers can take steps to increase funding for affordable housing programs, and can also work to create new tax incentives and regulations to encourage private investment in the housing market. Additionally, they can work to improve access to credit for low-income and minority communities, and can take steps to address the underlying issues of poverty and inequality that contribute to the housing crisis.

However, there are also potential drawbacks to government intervention. Some critics argue that too much government involvement in the housing market can lead to inefficiencies and distortions, and can also lead to unintended consequences such as further exacerbating the affordability crisis. Additionally, there may be resistance from the private sector and concerns about government overreach and infringement on property rights.

Notable champions of addressing the housing crisis include figures such as Senator Elizabeth Warren and Representative Alexandria Ocasio-Cortez, who have both proposed ambitious plans to address the issue. They argue for the importance of government intervention and investment in affordable housing, as well as addressing systemic issues of inequality and poverty. On the other hand, notable critics include figures such as Ben Carson, the current Secretary of Housing and Urban Development, who has been criticized for his lack of action on the issue and for his proposed budget cuts to affordable housing programs.

Overall, the American housing crisis is a complex and ongoing issue that has both immediate and long-term consequences. It is a problem that has been affected by a range of factors, including rising housing costs, the subprime mortgage crisis, and the lack of affordable housing and access to credit. While there are optimistic forecasts and potential opportunities for addressing the issue, there are also pessimistic outlooks and potential drawbacks. It is clear that addressing the housing crisis will require a multi-faceted approach that addresses both the immediate needs of those affected, as well as addressing the underlying issues of poverty and inequality that contribute to the problem.

Sources:

National Low Income Housing Coalition. (2018). The Gap: A Shortage of Affordable Homes. Retrieved from https://nlihc.org/sites/default/files/gap-2018-report.pdf

Urban Institute. (2019). The State of the Nation's Housing 2019. Retrieved from https://www.urban.org/research/publication/state-nations-housing-2019

Warren, E. (2019). The American Housing and Economic Mobility Act. Retrieved from https://www.warren.senate.gov/imo/media/doc/AHEMA.pdf

Ocasio-Cortez, A. (2019). The Green New Deal. Retrieved from https://ocasio-cortez.house.gov/green-new-deal

Carson, B. (2019). Secretary Carson's Statement on the President's 2020 Budget Proposal. Retrieved from https://www.hud.gov/press/speeches/secretary-carsons-statement-presidents-2020-budget-proposal.