The article discusses the complexities of the current housing crisis, arguing that baby boomers are often blamed unjustly. Key factors contributing to rising prices include record-low interest rates, persistent inflation, and excessive regulation, collectively leading to a critical housing shortage. The construction of new homes peaked in the late 1970s, while stagnant wage growth against a backdrop of rising inflation has further deteriorated affordability, rendering homeownership unattainable for many in today’s economy, beyond the influence of any single generation.
Boomers are blamed for the housing crisis, but low interest rates, inflation, and overregulation are significant contributors to rising prices and supply issues.
Housing supply has declined since the population was smaller in 1980; in the late 70s, 18.5 million units were built, but this rate has not continued.
Raising interest rates could lower housing prices but would also result in higher mortgage payments, which is detrimental for those needing financing.
Inflation has continuously risen since the U.S. removed itself from the gold standard, making homes less affordable and wages stagnate in comparison.
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