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Will New Interest Rates Policies Negatively Impact the US Housing Market?

Macro

Housing is part and parcel of the American dream.

It’s generally expected for the American middle class to raise a family and have a home with a garage and a picket fence. However, that dream has become just that: A fleeting dream.

Zoning regulations, stringent environmental standards, and other policies that constrict the housing supply have made housing more expensive in many places. As a result, many people have been priced out of home ownership in countless housing markets.

Rebel Capitalist Pro

Due to this new reality, people have been compelled to look at Sun Belt States and less populated parts of the country to find affordable housing. These areas tend to be more friendly towards housing development, have lower taxes and regulation, and a lower cost of living.

There’s a great re-sort of people moving from blue states to free red states. This has been an overarching trend for the past three decades, and went on hyperdrive during the COVID-19 pandemic. 

It’s undeniable that many Americans desire freedom. However, there are many politicians and bureaucrats who want to ruin everything by imposing their interventionist policies on millions of people, thereby reducing their living standards. Plus, there will be some demagogic politicians calling for people to receive “free” housing. That will create a whole host of new problems that will reduce housing quality while fleecing taxpayers.

It’s going to take a philosophical revolution in order for the US to correct its course. Anything short of that will result in the US continuing down its tyrannical path.