It’s harder than ever to buy a home, thanks to immigration, environmental regulations, and zoning restrictions. The word “crisis” gets used too often, but housing certainly qualifies.
On the heels of an election won by Democrats who stressed “affordability,” the Trump administration has floated the idea of introducing 50-year mortgages to lower the entry cost of buying a home. Is that a good idea?
“I bought my first condo in the early 1990s in Washington, DC. Paid $115,000 for it. It was in McLean, Virginia, a nice area, and it was three times my income,” says Peter Schweizer, host of The DrillDown podcast. “How many people today could say they can take their income, triple it, and buy a house for that price?”
Co-host Eric Eggers does the math. “Don’t get a 50-year mortgage,” Eggers cautions. “On a $350,000 house at 6 percent interest, you would pay $250 a month less, but you would spend an extra $367,000 in interest.”
Housing costs have risen for many reasons, but immigration is a big factor. Since 1995, immigrants — legal or illegal — to the U.S. have risen by about 30 million people and now account for 15.8 percent of the population, according to Pew Research. That adds demand for housing.
Environmental restrictions and zoning restrictions are another large factor. A recent study quantified their effects on housing prices. In San Francisco, as the hosts note, restrictive zoning laws added $400,000 to the cost of a home. “In Seattle, Los Angeles, New York City, it’s much better: it’s only $200,000 added to the costs there,” Schweizer adds.
Hellbound and Down 
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