Housing costs: the root of US economic malaise?

What happened

"You have to marvel at America's economy," which defied recession predictions and "enjoyed one of the boomier years of the century," The Economist said. But a lot of voters "feel down on the economy," The Associated Press said, and a "major reason" is the "housing affordability crisis."

Who said what

"The bottom line is we have to build, build, build," President Joe Biden said in a speech last week to the National League of Cities. "That's how we bring down housing costs for good."

The commentary

"Even as incomes are going up and the economy is doing well and inflation is coming down, people can't buy homes," Redfin chief economist Daryl Fairweather said to AP. "That's like the biggest problem for Biden because it's not one that he can solve."

The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

What next?

Biden's reelection could hinge on whether 30-year mortgage rates, currently at 6.74%, rise to 8% or fall closer to 6%, Moody's Analytics chief economist Mark Zandi told AP. Housing costs should drop somewhat this summer after last week's National Association of Realtors commission-fixing settlement, The Wall Street Journal said.