The US housing market is about to fall and all this is due to Elon Musk and his viral criticism. Musk’s Government Efficiency Department (DOGE) has stopped all housing projects in the US, including a $ 1 billion program with the aim of preserving affordable housing. This step is a part of broad funding freeze in America Department of Housing and Urban Development (HUD), according to an internal document reviewed by the Associated Press.
American Housing Dreams Hard Shattered?
A report from Mitrade.com showed that the cost of monthly housing in the US increased in a record of $ 3,104 in January. In addition, the mortgage payment has doubled in the last five years, $ 416 for property taxes and $ 361 for insurance with an average of $ 2,237 per month. The prices of homes within the country have risen to the second largest distance in history, which is between $ 31,300 to $ 446,300.
Dog’s move has allegedly affected housing projects in over 1,000 communities and forced at least 8 national organizations to shut down that provide technical assistance to housing programs. Major non-profit organizations such as LISC and Enterprise Community Partners have lost $ 30M in canceled grants. Not only the owners of the house but also developers and contractors are suffering from large -scale pruning, stopping these grants. “This would destroy low -income families,” Warned by Enterprise CEO Sean Donovan. “We are losing thousands of affordable homes and local jobs overnight,” he said.
According to realtor.com, the American Housing Market currently requires an additional 3.8 million houses to meet the 2024 housing demands. Now, with eliminating significant funding with Dogge, this difference is expected to grow and cause some vocal movement.
Decline in home sales and hostage rates
The current status of the US housing market is neither adapted to the government nor buyers. The pending house sales saw a decline of 4.6% in January with a famous decline in the midwest, south and west. The pending home sales index (PHSI) which is a major indicator based on contract signature, also fell to 70.6 in January-a one-time low. Additionally, the hostage rates have seen a sudden increase of 6.91% to 7.04%, which is very difficult to own a house in the US.
With the strength and important money at no eye, the American housing crisis seems to be beginning.
