'We've probably made housing unaffordable for a whole generation of Americans': top real-estate CEO on the real cost of Covid economic firefighting | Fortune

"The sweeping economic interventions launched during the Covid-19 pandemic may have made American homes less attainable for millions-a reality the housing market will need years, if not decades, to correct, warns top real-estate executive Sean Dobson. The Amherst Group CEO, whose subsidiary Main Street Renewal is one of the country's largest institutional landlords, told ResiClub's Lance Lambert that he believes the aftershocks of loose lending in the run-up to the Great Financial Crisis, and massive stimulus and abrupt policy pivots in the years since, have fundamentally altered the homeownership landscape for an entire generation."

"Dobson estimated that it will probably take 10 or 15 years of steady income growth to get affordability back to something approaching fairness, referencing postwar to pre-2006 norms. He placed the blame squarely on a combination of pandemic-era monetary policy, describing economic policy as "reckless" as well as surging asset prices and stagnant wage growth. "Affordability has probably never been as bad as it is today, the way that we measure it," Dobson said-worse, even, than the feverish markets of 2006. "You've got to be very, very careful.""

"On the sidelines of the conference, Dobson told Fortune that "rental is going to have to become a part of the solution," not just because he's invested in the success of his firm but for the health of the country. "What are our goals?" Dobson asked hypothetically. "Is our goal to get everyone long real estate? Or is our goal to get everybody to live where their kids can go [to a g"

Sweeping economic interventions launched during the Covid-19 pandemic may have made American homes less attainable for millions. Aftershocks from loose lending before the Great Financial Crisis, massive pandemic-era stimulus, and abrupt policy pivots have altered the homeownership landscape for an entire generation. Affordability is now worse than at the 2006 market peak due to surging asset prices alongside stagnant wage growth. Pandemic-era monetary policy amplified price gains without matching income gains. Restoring affordability will probably require 10 to 15 years of steady income growth to approach postwar-to-pre-2006 norms. Rental housing will need to become part of the solution to enable families to live where educational and community needs are met.

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