American families are suffering from Democrats’ HomeBuyer Price Hike, with soaring housing costs that have raised the median home price by $100,000 and the average monthly mortgage payment has gone up $877 since President Biden took office.* Affording a home is now out of reach for many Americans, who are already falling behind due to Biden-Flation. Yet Senate Democrats are still working behind closed doors on a trillion-dollar tax hike plan that would make inflation worse.

 

In a full committee hearing, Ways and Means Republicans highlighted how President Biden’s economy is a cruel economy for working families with 40-year high inflation and surging prices at the pump.

 

READ: Hearing Opener: Average Home Price Has Gone Up $100,000 Since President Biden Took Office

 

KEY TAKEAWAYS:

The Home Buyer Price Hike makes affording a home out of reach for many Americans. 

• Housing inflation increased by 5.6 percent over the last year – the largest increase since 1991. 
• Rents increased at the fastest pace in more than three decades.

 

Surging mortgage rates due to the White House’s inflation denial have housing affordability at new lows.

• Homebuyers who purchase a $300,000 home at the end of June would pay around $400 more in mortgage payments now relative to if they purchased the same priced home when President Biden entered office.
• Housing affordability, along with a surge in material prices, is near the low of 15 years ago.

 

Inflation today is raging at over 9 percent and getting worse.

• Democrats are blaming everyone else for the cruel rise in housing costs, which account for one third of inflation. 
• Housing inflation is raging at five times the national average before President Biden took office.

 

THE BOTTOM LINE:

Housing was affordable after Republican Tax Reform. President Biden turned this around on a dime.

• After Republican tax reform, American workers’ wages were growing and housing affordability remained strong. The average home price was steady and the number of new housing units surged. 
• President Biden’s policies are crushing the American dream for families who are facing a pay cut every month. Housing is now more unaffordable than it’s been in over a decade.

 

During the hearing, Ways and Means Republican Leader Rep. Kevin Brady (R-TX) said, “Democrats in Washington are blaming everyone under the sun for the cruel rise in housing costs – builders, local investors, developers, who make the construction of new homes and neighborhoods reality.”

 

Republican witness Edward Pinto, Senior Fellow and Director of AEI’s Housing Center emphasized that Democrat policies fueled rising costs, “Let me be clear: the housing market is becoming less affordable – not because of institutional landlords or other private sector actors – but due to misguided federal policies.”

 

Rep. Vern Buchanan (R-FL) said, “A constituent from my district shared with me that their rent has increased by nearly $1,000 per month in the last couple of years. And it’s not just housing that she’s concerned about – skyrocketing food, fuel and other costs are killing their family budget.”

 

Rep. Brad Wenstrup (R-OH) added, “Unfortunately, these days we’re living through a period of record inflation, skyrocketing costs, supply chain challenges, rising interest rates, all of which make homeownership increasingly out of reach for many more Americans.”

 

Rep. Carol Miller (R-WV) noted, “The affordable housing industry in West Virginia has been decimated with the rising costs of material and labor in the last two years. Every trade in the construction process has seen significant increases, some as much as 50%!”

 

* Average monthly mortgage payment with 20 percent down. Source: Redfin Analysis of MLS Data and Public Records, RentPath