401k Raiders

Housing is un-affordability is a huge issue in the U.S. today and will be a pillar of both political parties in the mid terms and beyond.

Young people are majorly affected by the change in the U.S. housing economy, and find themselves unable to accomplish milestones like home ownership in the same time spans as their parents. Currently (according to NAR) the age of the first time home buyer is at an all time high of age 40. Demographics are destiny, and depriving Americans from forced investment in the form of a mortgage is going to have ripple effects.

Attempting to get ahead with policy, Donald Trump is weighing giving younger generations more access to the capital their already have in 401ks.

Perhaps, this might be one key to the puzzle and will open up home ownership to those who began to think they would never own a home. I would argue that it is just one key to that puzzle!

 In addition to this kind of policy it’s necessary to make sure that homebuilders and developers find themselves in a position where they are able to build projects that make financial sense. If supply doesn’t increase with the new demand then today’s homes will just meet the market at a higher price. Today’s sellers also face the issue of trading up into a higher interest rate.

 In a lot of circumstances, it doesn’t make sense to leave a home you have grown out of because finding something bigger becomes that much more expensive when you go from 3% to 6%.

Limiting density limits supply and keeps housing prices high. That’s why oftentimes NIMBYism is prevalent among older generations who want to keep their home values high.

That’s why I am against sweeping regulations that allow for districts to be historically preserved as opposed to a project by project approach.