A Roof Overhead and the Ballot Box
Housing is one of the most critical economic crises in various countries. However, 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, with some attributing it to increased immigration, though this might not be a significant reason. In the UK, while 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 right from the start that rising interest rates ultimately have an impact. High interest rates increase mortgage rates and, on the other hand, make money more expensive, meaning it becomes harder for construction companies to obtain new financing for project development.
In these conditions, housing prices, as the main factor driving up other prices, cascade down like a snowball turning into an avalanche, impacting other prices. Controlling other prices gradually reduces inflation, but housing prices in the US and several other countries remain high. Considering the investment value of housing, it is unlikely that a significant drop in housing prices could be seen as beneficial. Yes, you read that right. A significant drop in housing prices harms the part of society that has invested in this sector. Apparently, there’s no way to escape this dilemma, but the current situation in the US indicates there are solutions. High housing prices are not solely rooted in the aforementioned reasons. Large investment companies in the US have invested in the rental sector and have taken control of numerous large residential complexes, engineering rent prices based on their interests. Although this specific point is not the main cause of high rent prices, it 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 merger and integration plans to create monopolistic investment blocks in the housing sector. He has also promised to provide significant 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 during his first term. Here, we must point out an interesting note: advisors from the British Labour Party, who recently won elections in their country, are collaborating with the Democrats’ campaign in the US, and the effects of this collaboration are becoming evident.
The change in American lifestyle due to rising housing prices has been significant. Many families have been affected, and the opportunity to own a home has been lost for many in recent years due to rising prices and expensive mortgages. The reduction in mortgage rates over the past year is still not enough to make up for many lost opportunities. This is not something that a significant part of American society will easily forget, and the Biden administration’s efforts in this area were neither noticeable nor well-communicated with citizens to make them aware that the government was not to blame. Harris and his campaign have suffered greatly in public opinion from this issue and will continue to do so, despite not being at fault. A key point in the American electoral process is the bipolar state of politics in the country. A single issue or promise can hardly positively influence voters. Voters who have specific cultural and racial reasons for their choices only reinforce their opinions with every negative shock. In general, it should also be emphasized that destructive events have a faster and stronger impact on voter opinion. Destruction is easier than construction, and laying brick upon brick is not appealing to voters.
