Housing has been a big topic of late due to its unprecedented rise. A rise we can blame on the not-so-Federal Reserve for continuing to purchase $40 billion dollars worth of mortgage bonds every single month.
This artificially lowers interest rates which enables people to purchase more expensive houses for less each month.
You see, people purchase the monthly payment, not the actual cost of the house which is a shame. Further, anyone with an adjustable-rate will be subject to higher costs in the future. It is almost as if the Federal Reserve is purposely making homeownership unaffordable and/or causing the next bubble.
This brings us to an article from Bloomberg.
America Should Become A Nation Of Renters
Rising real-estate prices are stoking fears that homeownership, long considered a core component of the American dream, is slipping out of reach for low- and moderate-income Americans. That may be so — but a nation of renters is not something to fear. In fact, it’s the opposite.
Bloomberg
The writer, an apparent economist thinks homeownership is a thing of the past. Instead, he thinks we should become a nation of renters. He never explains why home prices have reached new records, instead, he just explains homeownership is a bad idea.
Read what he says next,
A nation of renters could lead to a world where location decisions are driven far more by personal preferences and life-cycle demands. Younger workers might prefer the excitement of the city. A couple just starting a family could reunite with their parents or siblings in a small town.
The U.S. is not quite there yet, and not just because too many people are chasing too few apartments. To see the U.S. as a nation of renters requires a revision of the American dream of homeownership. This country was always more about new frontiers than comfortable settlements, anyway.
That is propaganda if I ever read it. Notice how he spins homeownership into a bad thing. Further, his answer is for us all to become apartment dwellers. While that may fit some, it is certainly no one’s dream.
As with all mainstream sources of information and platforms, we clearly see a drive to divert our attention or drive our attention to certain topics. This one is a classic example.
Radical global changes do not occur in silos. They occur each and every day in the form of the media you subject yourself to. Day by day we are all conformed to these agendas through our media choices.
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The Big Question
So then, if we are to become a nation of renters, the obvious question comes next…
From whom do we rent?
The answer would be corporate America who is currently buying up at least 20% of houses in major markets, (see: Inflation, Housing, And The Wealth Gap). Thanks to the Federal Reserves’ low-interest rates!
How exactly can American’s compete with that?
We cannot, and that is the point. This is just another way prices are being driven up which is pushing many American’s out of the housing market. Let’s factor in something else here, the more housing costs go up, the more rents will go up. So this will benefit no one.
In the end, this is another driver of globalization and the impoverishment of the middle class. Remember, Welcome to 2030. I own nothing, have no privacy, and life has never been better?
That just might arrive on schedule.
Woe unto them that join house to house, that lay field to field, till there be no place, that they may be placed alone in the midst of the earth!
Isaiah 5:8