Beside the burden of student loans that many young professionals face, the rising housing and rental costs have become a key barrier for the younger generation to build wealth and to reach the “next step” of adulthood. It’s almost impossible, at least on my end, to not compare my growth to that of generations before me, but that metric might as well be comparing apples to oranges. When our parents were our age, they were 8% more likely to own a house than we are. Not only were they less likely to have student loan debt, but they were also entering the housing market during an economic boom of the late ’80s and early ‘90s, something I cannot say is true of 2020. Continued, rent prices continue to increase yearly. In just August, rent prices year-to-year in Detroit have risen 15.6%. These barriers to entry make ownership of property an overly complicated accomplishment.
Luckily for us, there is an election around the corner that can help address some of these problems. It is important to keep in mind that the cost of housing varies greatly across the nation, states, and regions. both national parties adopted lengthy platforms that include their beliefs and goals based on the lucrative housing market. See key points below:
Democratic Party Platform
- Democrats believe no one should have to spend more than 30% of their income on housing.
- Democrats believe the government should take aggressive steps to increase the supply of housing, especially affordable housing, and address long-standing economic and racial inequities in our housing markets.
- Democrats promise to create a new tax credit of up to $15,000 to help first-time homebuyers.
- Democrats promise to enact a new Homeowner and Renter Bill of Rights to protect families from abusive lenders and landlords.
Republican Party Platform
- Republicans believe in a scale-back of the federal role in the housing market, promote responsibility on the part of borrowers and lenders, and avoid future taxpayer bailouts.
- Republicans believe that reforms should provide clear and prudent underwriting standards and guidelines on predatory lending and acceptable lending practices.
- Republicans promise to end the government mandates that required Fannie Mae, Freddie Mac, and federally insured banks to satisfy lending quotas to specific groups. They say discrimination should have no place in the mortgage industry.
Written by Let’s Detriot Adam Majestic