The challenges of immigration, environmental regulations, and zoning restrictions have made home buying increasingly difficult. It’s no wonder the term “crisis” often gets thrown around when discussing the housing market.
The Trump administration suggested a 50-year mortgage system as a response to the Democratic victory in an election that stressed “affordability.” Would this actually help reduce the cost of buying a home?
“I bought my first condo in Washington, D.C., back in the early ’90s for $115,000. It was in a lovely area called McLean, Virginia, and it was three times my income,” recalls Peter Schweitzer on the Drill Down podcast. “How many people today can manage to triple their income for homes priced like that?”
Co-host Eric Eggers crunches the numbers. “Avoid a 50-year mortgage,” he advises. “If you purchase a $350,000 home at a 6% interest rate, your monthly payments will be $250 lower, but you’ll end up paying an extra $367,000 in interest.”
There are various factors contributing to rising housing prices, and immigration plays a significant role. Since 1995, about 30 million people have immigrated to the U.S., legal and illegal, which now makes up about 15.8% of the population, according to Pew Research, resulting in higher housing demand.
Environmental and zoning regulations also have a major impact. Recent research has quantified this effect on housing prices. For instance, restrictive zoning laws in San Francisco alone have raised home prices by $400,000. “In places like Seattle, Los Angeles, and New York City, it’s only an extra $200,000,” adds Schweitzer.
They highlight that environmental regulators have long been against single-family homes. “Their preference seems to be for apartments and condos,” Eggers explains. “It’s interesting how many people advocating for environmental regulations also support relaxed immigration policies. There’s quite a bit of overlap.”
Schweitzer discusses increasing construction costs: “The price of lumber and labor is indeed climbing. But even more so, it’s these regulations driving costs upwards.” He cites the Biden administration’s opposition to gas stoves as one example, claiming it has added roughly $15,000 to the cost of new homes.
Homeownership represents a cornerstone of the American Dream, playing a role in building community and pride—especially as a place to raise children. Recent studies have even shown a connection between rising rents and a declining birth rate.
Is this intentional? If so, what’s the goal?
The host reminds listeners of the World Economic Forum’s notorious statement that by 2030, “you will own nothing and be happy.” Many see this as a form of social engineering.
“Those who don’t own property are definitely more at risk,” Schweitzer adds. “For most, their home is their largest investment. Losing that security amplifies their vulnerability.”
Eggers concurs: “Sovereignty is a key American value.”
For the Trump administration, addressing affordability seems like a lesson learned from previous election setbacks in places like New York, Virginia, and New Jersey. Schweizer suggests that Trump could frame the deportation of illegal immigrants as a way to tackle housing shortages and lower prices, redirecting the focus towards affordability and building projects.”
This strategy not only helps position Trump’s policies as beneficial for reducing costs but also brings attention to states like California, where exorbitant housing prices are often linked to regulations imposed by Governor Gavin Newsom, who has his eyes on a 2028 presidential run.
“Gavin Newsom should really be questioning why living costs in California are so high. Ultimately, it’s because of massive government spending,” Schweitzer asserts.
