US citizens can barely afford homes; another challenge for Biden

By Al Mayadeen English
Source: Bloomberg
19 Sep 2023 15:11

A recent Bloomberg report underscores the growing problem of low housing affordability in the United States, impacting both those looking to purchase homes and renters.

A house under construction seen in Culver City, a neighborhood of Los Angeles on November 21, 2020 (AFP via Getty Images)

A new report by Bloomberg highlights that low housing affordability in the United States is putting pressure on both prospective homebuyers and renters, with the potential of it becoming a significant issue in presidential politics.

Milwaukee, the largest city in the crucial swing state of Wisconsin, experienced a significant decline in housing affordability within its rental market over the year ending in July at a rate more than any metropolitan area in the United States, as per the National Association of Realtors.

Additionally, the region saw one of the most substantial increases in mortgage burden among the top 50 largest metropolitan areas over the past year, as indicated by data from Zillow.

The housing predicament in Milwaukee, where the upcoming Republican National Convention will be held next year, mirrors a situation unfolding in cities nationwide, as per the report.

In August, mortgage rates in the United States reached their climax since 2000, resulting in the lowest number of home-buying applications seen in many decades.

Exacerbating the situation is the limited availability of housing stock, which has contributed to driving up both home selling prices and rental rates to levels close to historic highs.

However, Milwaukee's housing crisis is particularly noteworthy because the region has historically enjoyed relatively stable and affordable housing costs. Furthermore, it has the potential to generate political repercussions, as among the major metropolitan areas located in swing states, it experienced the most significant decline in housing affordability over the past year.

The report stressed that this situation could influence how voters perceive their personal financial well-being and the overall state of the US economy, potentially exposing a political vulnerability for President Joe Biden. Such vulnerability is particularly pronounced among young voters, who have been heavily affected by the decline in housing affordability.

The majority of #Americans are worried about paying for housing in the coming year, as inflation drives prices through the roof. The #US is suffering from the repercussions of the western-led sanctions on #Russia. pic.twitter.com/BNRYF6nx9i
— Al Mayadeen English (@MayadeenEnglish) August 17, 2022

For Biden, any setback in a state he won by a narrow margin of just 20,682 votes in 2020 would be detrimental. Philadelphia, another significant population center in a tightly contested battleground state, is also among the US metropolitan areas that experienced substantial increases in mortgage burdens last year, as reported by Zillow data.

This is happening as the United States just witnessed its gross national debt surpassing the milestone of $33 trillion for the first time in the country's history, serving as a clear indicator of the nation's shaky financial situation.

Just three months ago, the United States reached its previous record-high debt level of $32 trillion. This occurred shortly after President Joe Biden signed legislation to uncap Washington's debt ceiling previously set at $31.4 trillion, thereby preventing a potentially catastrophic American debt default.

Washington is currently facing a similar financial standoff as the government expenditure budget is set to expire by the end of September amid yet another bipartisan clash over federal spending.