By Daniel Stefanski |
National Republicans are highlighting the massive decline in housing affordability under a Democrat president.
Last week, the Republican National Committee (RNC) posted about housing prices on “X,” highlighting how the inflation under the Biden Administration has put these costs (and dreams of owning a home) out of reach for many Americans. The RNC wrote, “Housing affordability has fallen to the lowest level on record as interest rates rise in response to Bidenflation. ‘That’s Bidenomics!’”
The Housing Affordability Index, supplied by the National Association of Realtors (NAR), showed that mortgage affordability in the U.S. is below ‘100,’ which means that “a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.”
In a press release issued in mid-September, NAR Deputy Chief Economist and Vice President of Research, Jessica Lautz, said, “Home buyers face the most difficult affordability conditions in nearly 40 years due to limited inventory and rising mortgage interest rates. The impact is exacerbated among first-time buyers who are more likely to be from underrepresented segments of the population.”
NAR lists three reasons affecting buyers’ reticence to purchase homes: “not enough homes available for purchase in buyers’ budgets (34%), buyers are waiting for mortgage rates to drop as higher prices affect affordability (18%) and buyers are waiting for prices to drop (9%).”
Another social media post, from the Chief Economist of Financial Products at Bloomberg LP, Michael McDonough, showed that the monthly mortgage payment for purchasers of existing homes went from $977 in March 2020 to $2,309 today.
Addressing the increasing housing costs for Arizona was a priority for state lawmakers on both sides of the aisle during the recently completed legislative session, though those efforts produced few results in a very divided government. Republican lawmakers were able to strike a deal with Democrat Governor Katie Hobbs during the final stretch of the extended session to prohibit the rental tax for Arizona tenants. Arizona Senate Republicans claimed that “approximately 70 municipalities within our state charge this tax,” and that “this tax can cost as much as $200 per month.”
Senate Majority Whip Sine Kerr applauded the signing of this bill, explaining how important the removal of rental taxes across the state would be for countless Arizonans. She stated, “Rental prices aren’t going down anytime soon, and Arizona tenants are agonizing over just how much more expensive it is now to rent an apartment or house than ever before. For Metro Phoenix, June of this year saw the second-highest monthly total of evictions since the 2008 Great Recession. According to Maricopa County records, landlords filed to evict nearly 7000 times last month. We needed to act promptly. This bill will provide some help, and I’m proud the Majority Caucus spearheaded this change in tax policy.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
