A Roof Overhead and the Ballot Box
Housing is one of the most critical economic crises in various countries, but the serious reality is that the rise in housing prices and rent in some industrial countries during the post-COVID era has been the main driver of inflation rates. Canada, neighboring the United States, has faced a housing price crisis, and some have cited increased immigration as one of the reasons, which may not be a significant cause. In the UK, although exorbitant housing prices in London have always been a part of London life, for the past two or three years, it has become a reality for British life. It should be noted from the outset that rising interest rates ultimately have an impact. High interest rates increase mortgage rates and, on the other hand, make money more expensive, which means it becomes harder for construction companies to obtain new financing for project development.
In these circumstances, housing prices act as a primary factor in the stepwise increase of other prices, or in fact, like a snowball turning into an avalanche that crashes down on other prices. Controlling other prices gradually reduces inflation, but housing prices in the US and several other countries remain high. Given the investment value of housing, a serious reduction in housing prices is unlikely to be seen as a benefit. Yes, you read that right; a serious reduction in housing prices harms the part of the community that has invested in this sector. Apparently, there is no escape from this dilemma, but the current situation in the US indicates that there are solutions. High housing prices are not only rooted in the aforementioned reasons. Large investment companies in the US have invested in the rental sector and have taken over numerous large residential complexes, engineering rent prices based on their interests. This particular point is not the main reason for high rent prices but has been very influential. In this year’s race, Harris has a plan for this sector and has promised to confront these companies and their mergers and integrations to create monopolistic investment blocks in the housing sector. She has also promised to provide high credit for first-time homebuyers and, beyond that, is one of the first candidates to promise widespread housing construction in the British and European style, proposing a plan to build three million homes in her first term. It is here that we must point out a unique fact: advisors from the British Labour Party, which recently won elections in that country, are collaborating with the Democrats’ campaign in the US, and the effects of this collaboration are becoming apparent.
The changes in the American lifestyle due to rising housing prices have been significant. Many families have been affected, and the opportunity to own a home has been lost for many in recent years as prices rise and mortgage loans become more expensive. The reduction in mortgage rates over the past year is still not enough to compensate for many lost opportunities. This is not something that a significant part of American society will easily forget, and the efforts of the Biden administration in this area neither stood out nor were well communicated to citizens to let them know the government was not to blame. Harris and her campaign have suffered greatly in public opinion from this issue and will continue to suffer without being at fault. The key point in the American electoral process is the bipolar nature of the country’s politics. A single issue or promise can hardly positively influence voters. Voters who have specific cultural and racial reasons for their choices reinforce their opinions with every negative shock. Generally speaking, it should also be emphasized that destructive events have a faster and stronger impact on voter opinions. Destruction is easier than construction, and laying brick upon brick is not appealing to voters.