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It is time for another ‘no BS’ report that cuts through the spin delivered by way too many sources. While no two housing markets are alike, and some parts of the country are faring better on housing affordability than others, it is obvious that in most places in the United States of America (U.S.A.) that buying a home has become unaffordable for much of the population. Some facts gathered from fresh research by a range of cited sources will tell the picture.
- According to real estate site Redfin and Business Insider, their data shows just 15.5% of homes were considered affordable for the average household in 2023, down from 20.7% the year prior.
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Markets Insider said: “Mortgage rates are still hovering near two-decade highs, but out-of-whack supply and demand dynamics have prevented home prices from falling as they typically do when borrowing costs rise.”
- They quoted William Blair macro analyst Richard de Chazal in a note published Friday: “[T]his spike in [interest] rates has had a marked impact in other areas, including causing a sharp deterioration in housing affordability to its lowest level since 1985 and dramatically lowering the supply of existing homes for sale in the market.” The graphic below was cited. The call out box is by Mobile and Manufactured Home Living News (MHLivingNews.com)
In an email to Manufactured Housing Institute (MHI) followers/members on 1.3.2024, that trade group gave no mention of the sharp year-over-year drop in manufactured home sales in 2023 vs. the same month in 2022.
The fact that U.S. conventional home builders reportedly had “a banner year” is 2023 often goes back to causes previously reported by Manufactured Home Pro News (MHProNews).
Marketplace media published a report entitled “Homebuilders are constructing fewer homes … on purpose.”
Homebuilder Pulte Group reported $500 million in quarterly profit this week and CEO Ryan Marshall told investors it could’ve been more. “We purposely restricted sales through lot releases or similar actions in roughly 75% of our communities across the country,” Marshall said.
The company sold fewer houses than it could have. On purpose.
That was 7.29.2021, but the pattern holds, per Bing Copilot (Bing AI). That information was plugged into Bing Copilot with the question:
> “Is that same pattern reported then true now?”
Yes, the same pattern of homebuilders intentionally capping their sales is still prevalent. According to a report by Zonda, despite a hot housing market, new data shows that 85% of homebuilders are intentionally capping their sales1. The reasons for this include shortages of land, labor, and materials, which make it difficult for builders to keep up with demand. Builders are also waiting longer in the construction phase to price homes and put them up for sale due to the volatility of costs1.
It’s important to note that while the housing market is hot, there is still a shortage of available homes. Pending sales of existing homes were down about 2% from May to June, according to data released by the National Association of Realtors1. Sales of new homes fell almost 20% in June from the same time last year1.”
In that Masthead on MHProNews report that cited Marketplace and Putle’s CEO, it said the following.
Politicians, public officials, as well as major business leaders have lost credibility. So said establishment-minded and Civic Alliance member Edelman in a survey linked here. Politicians have on numerous occasions exhibited the paltering method. Various facts are stated, that may be largely or wholly accurate. But in the absence of context, selective use of facts can be misleading. Furthermore, accurate facts absent an evidence and reason-based analysis can allow a bureaucrat, politico, nonprofit, business, media, or others to spin the facts in a manner that weaponizes data in favor of an obvious or subtle agenda.”
On RealClearPolitics Election 2024 – RCP Poll Averages on this date (1.7.2024 at about 1:12 AM ET) are the following.
Joe Biden is often sitting in the White House, when he isn’t on a vacation. Per the New York Post on the last day of 2023 (12.31.2023): “Biden spent more than a third of the past year at a getaway spot — either one of his Delaware residences, a posh vacation site or Camp David, according to a Post review of public records. The 81-year-old commander in chief was away at one of the relaxing locations or famous retreat 138 days in 2023 — or 37% of the time.”
Housing affordability has dramatically worsened since Biden took office. But then so have a lot of other costs of living. The call out boxes are by MHProNews, but the base graphic is from FactCheck, generally a left-of-center (i.e.: more pro-Biden) type of site.
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Why are housing prices so unaffordable? It is a combination of factors, including sharply higher interest rates.
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Joe Biden campaigned on healing the nation. But as recently as January 5, 2024, Biden blamed Trump and ‘MAGA’ Republicans for the ills of the nation, saying they are a ‘threat to Democracy.’ Pardon me? Democrats are trying to take Trump off the ballot in several states. How is that democratic? They claim it is due to “January 6th (2021) and his “insurrection.” But in America we wait to punish someone only after they have been tried and found guilty in a court of law. Biden and Democrats are pointing their fingers at their political opponents. Furthermore, Trump isn’t charged with insurrection. They are trying to remove the top candidate (per polls) from ballots in states where they can do so. So who is the real threat to democracy?
Let’s be clear. Some Republicans aren’t so pure either. We are political independents and have been for over a decade. But Democrats have become the party of the wealthy, and yet they keep telling their traditional base of supporters that they are for the poor, minorities, women, and the working class. Serious? Words can be cheap. Biden promised better housing policies, but those policies have produced worse results. Why trust the guy that is working for the wealthy?
To illustrate, these questions were put to Bing Pilot on 1.7.2024. Keep in mind that Bing is part of the Microsoft group of brands, and uber billionaire William “Bill” Gates III who helped found Microsoft and has a sizable stake in Warren Buffet led Berkshire Hathaway is about as insider as they come.
> “It has been said that the Democratic Party has become the party of big corporate and wealthy donor interests. Open Secrets has documented the fact that the wealthy their corporate interests have been donating more to Democrats than to Republicans for some years, isn’t that correct?”
Yes, it is true that the Democratic Party has been receiving more donations from wealthy individuals and corporate interests than the Republican Party in recent years. According to Open Secrets, a nonpartisan research group that tracks money in U.S. politics, the top 20 individual donors and their spouses gave $463 million to Democrats in the 2020 election cycle, compared to $189 million to Republicans 1. However, it is important to note that not all Democrats are beholden to corporate interests, and not all Republicans are free from them. …”
“In the 2008, 2012, 2016, 2020, and 2022 election cycles, what was the total campaign contributions to Democrats and what was the total campaign contributions to Republicans?”
According to Open Secrets, the total campaign contributions to Democrats and Republicans in the 2008, 2012, 2016, 2020, and 2022 election cycles are as follows:
Table
| Election Cycle | Total Contributions to Democrats | Total Contributions to Republicans |
|---|---|---|
| 2008 | $1.8 billion | $1.6 billion |
| 2012 | $2.6 billion | $2.1 billion |
| 2016 | $1.7 billion | $1.4 billion |
| 2020 | $7.5 billion | $3.8 billion |
| 2022 | $2.2 billion | $1.4 billion |
It is important to note that these figures are subject to change as more data becomes available 1.
1: Open Secrets
The system has been rigged. That’s what about 70 percent of the country believes, per years of polling.
MHLivingNews and MHProNews have been reporting that for years.
Part of the rigged system includes the fact that much of the media is in the hands of the wealthy. As the information above reflects, those wealthy elites have been giving more to Democrats than Republicans. A deep dive into these topics ironically was produced by largely left-leaning reporters and sources who were blowing the whistle on the problems in big media, big corporations, big tech, and crony capitalists. See the video with transcript below of the award-winning Shadows of Liberty. Our sister site obtained the full-length version of that video. Watch it. Read that report with transcript. Watch it again. Read it again. Share it with your friends and circle of influence. No kidding. Just do it and you’ll better understand how the world really works.
The game today often isn’t outright lies, although some do that too. But all too often what occurs is the telling of a half-truth, as former CBS Reporter Kristina Borjesson said in the video with transcript report and analysis linked above.
Those half-truths are called “paltering.”
Added Insights, Summary, and Conclusion.
The shortage of new home building is leading to the shortage in housing. That’s common sense.
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Big government spending didn’t fix the economy, it eroded it.
It should be obvious that if big government and big federal/state spending was the solution to our national problems, things would be better. But instead, things are worse.
A bigger and bigger share of the budget is going to pay interest. Who benefits? Isn’t it big bankers? A few more Q&As with Bing Copilot shed more light on that topic too. Keep in mind your taxes are going in part for that higher interest on the federal debt.
> “Isn’t a larger share of the federal budget going to pay interest? How much has the deficit grown since 2020 and how much has the share of the budget going to pay interest increased since 2020? And who gets that interest?
Yes, the share of the federal budget going to pay interest has been increasing. According to Committee for a Responsible Federal Budget, interest payments on the federal debt are projected to cost over $300 billion this fiscal year, which is equivalent to 9% of all federal revenue collections and roughly $2,400 per household 1. The interest payments are a significant part of the federal budget, and it is currently the fifth-largest federal line item, costing more than federal spending on food and nutrition services, transportation, housing, education, or refundable tax credits 1.
The federal deficit has grown significantly since 2020. According to Congressional Research Service, the federal debt-to-GDP ratio rose significantly in FY2020, reaching slightly above 100%. The Congressional Budget Office projects that deficits and debt will trend upwards in the coming decades, with the debt-to-GDP ratio surpassing 200% by 2051 under current policy 2.
The interest on the national debt is paid to individuals, businesses, pension and mutual funds, state and local governments, and foreign entities 3. The Federal Reserve auctions the securities on behalf of the U.S. Treasury, and the securities go to the highest bidders 4. …”
> “Isn’t the Federal Reserve a quasi independent network of privately owned banks?”
The Federal Reserve is a complex organization that is both public and private. While the Board of Governors is an independent government agency, the Federal Reserve Banks are set up like private corporations. Member banks hold stock in the Federal Reserve Banks and earn dividends, but holding this stock does not carry with it the control and financial interest given to holders of common stock in for-profit organizations. The stock may not be sold or pledged as collateral for loans. Member banks also elect six of the nine members of each Bank’s board of directors 1.
It is important to note that the Federal Reserve is not owned by any one person or group. The Federal Reserve System is composed of 12 regional Federal Reserve Banks, each of which is owned by the member banks in its district. The Board of Governors is appointed by the President and confirmed by the Senate, and it is responsible for supervising and regulating the Federal Reserve Banks 12.”
> “In the U.S. is it generally the wealthy that own banks, or is it normally the poor and working class?”
In the United States, banks are typically owned by wealthy individuals and institutions such as pension funds, mutual funds, and insurance companies 1. According to the Federal Reserve, the largest banks in the U.S. are JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, U.S. Bancorp, Truist Financial Corporation, and PNC Financial Services 2. These banks are owned by a combination of institutional and individual investors, but the majority of the shares are held by institutional investors such as mutual funds and pension funds 3.
It is important to note that while the wealthy may own a larger share of the banks, many working-class Americans also own shares in these institutions through their retirement accounts and other investments 4. …”
> “What share of the wealth in the U.S. is in the hands of the top 5 percent of Americans?”
…The Federal Reserve reports that the top 5% of households held 61.8% of the nation’s wealth in 2021, while the bottom 50% held just 2.4% 2. In terms of dollars, the top 5% of households held approximately $32.6 trillion of the nation’s wealth in 2021 2. …”
> “While the middle class may have investments, like 401ks, or savings/CD accounts, isn’t much of the wealth of retires and the middle class held in housing? Can you give some data on that point?”
“Yes, it is true that housing is a significant source of wealth for many middle-class Americans. According to the Federal Reserve, the middle 40% of households in the U.S. held approximately $17 trillion in home equity in 2021, which is roughly 60% of the nation’s total housing wealth 12.
Homeownership is the primary source of wealth creation among families and results in many economic and societal benefits 3. Over the past 30 years, single-family existing-home sales prices have increased at an annual pace of 4.3% as of 2021 Q4, with home prices accelerating at a faster annual pace of 8.3% over the past 10 years 3. Due to strong price growth, homeowners are reaping large wealth gains from homeownership. As of 2021 Q4, at the national level, a homeowner who purchased a typical single-family existing-home 10 years ago at the median sales price of $162,600 is likely to have accumulated $229,400 in housing wealth, of which 86% came from price appreciation 3. …”
Homeownership done properly can still be a good deal. Renting may be necessary for some in the short term. But as a recent report on MHLivingNews explained, rents only tend to rise. While the cost of maintaining a home can go up, over time, mortgages tend to get paid down, and in many cases, get paid off entirely. Meaning, as time goes by, prudent homeowners are building equity. Renters get a bigger pile of rent receipts, usually with no equity.
Numbers of even wealthy individuals own a mobile or manufactured home. If it is good enough for them, it is good enough for me and you.
MHLivingNews reported a couple of years ago that mobile and manufactured homes are appreciating at often the same or even higher rates than conventional housing.
MHLivingNews reported that weather related incidents impacting mobile and manufactured housing is much lower than most people have been led to believe. A tiny fraction of a 1/2 percent of all mobile and manufactured homes are harmed by weather incidents in any given year. That’s according to National Weather Service data.
The affordable housing crisis is not hard to solve. The causes and the cures have been known for over 50 years. Who says? Federal researchers, working for the U.S. Department of Housing and Urban Development (HUD). Read it yourself in the reports linked below.
Who is it that has rigged the system?
It is often the rich and their corporate interests. That doesn’t mean that everyone that is rich is a crook. Not every businessperson is a crony capitalist.
That said, some have taken advantage of the laws in the U.S. and worked them to their own benefits.
There are problematic companies in the manufactured housing industry. MHLivingNews has reported on those for years (just search the site to learn more). Generally speaking, it can often be in a homebuyers’ interest to do business with a smaller, independent producer and an independent businessperson. That also happens to be what Statista said in a recent survey of who is more or less trusted in America today.
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Reading is fundamental.
Our society became independent from the English king and their wealthy elites and corporate backers. That was due in part to people who learned to understand the lessons of history and apply them to their own circumstances. Meaning, readers were leaders. The population was mobilized to independence through a combination of reading and the leadership of people of good will in the religious community.
It makes some people uncomfortable to talk about faith and God. But it is an essential element to a healthy society. As the practice of faith has declined, our social ills have crept up. Is that a coincidence? We don’t think so here.
If we are to reclaim our society from the powerful elites that once more control too many of our institutions, several things must occur.
Among them, people like you should be as personally secure in your housing choice as possible. Affordable housing matters. Most Americans, per recent research, want more affordable housing.
Sometimes, past habits and misinformed beliefs have held down millions of Americans. We can’t change the past. But you can influence your future. Be a part of the solution. Read more, pray more, do more, and make wiser decisions. We own a manufactured home. Perhaps with the right next steps, you can too. ###
PS: Mobile Home Living News, Manufactured Home Living News, (MHLivingNews.com) provides third-party research and other resource collections and reports not found on other sites. It is the widely acknowledged best source for authentic news on mobile and manufactured home living, as well as the policies that impact this segment of housing that provides an estimated 21.2 to 22 million Americans with good, surprisingly appealing living.
That’s a wrap on this installment of “News through the lens of manufactured homes and factory-built housing” © where “We Provide, You Decide.” © ### (Affordable housing, manufactured homes, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) (See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them.)
By L.A. “Tony” Kovach – for MHLivingNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing. For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com. This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.
Connect on LinkedIn: http://www.linkedin.com/in/latonykovach
Recent and Related Reports:
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