Are housing costs the main cause of the economic problems in the US?


Are housing costs the main cause of the economic problems in the US?

America’s economy surprised many by defying recession predictions and experiencing a strong year, according to The Economist. However, despite this positive outlook, many voters feel pessimistic about the economy due to the housing affordability crisis, as reported by The Associated Press.

President Joe Biden addressed the need for increased construction as a solution to lowering housing costs in a speech to the National League of Cities. Redfin chief economist Daryl Fairweather highlighted the current struggle of people being unable to afford homes, posing a significant challenge for Biden, as he cannot single-handedly solve this issue.

Looking ahead, the potential impact of 30-year mortgage rates on Biden’s reelection prospects was discussed by Moody’s Analytics chief economist Mark Zandi. The housing market is expected to see some relief this summer following a recent settlement regarding commission-fixing by the National Association of Realtors, as mentioned by The Wall Street Journal.

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