Tag Archives: Home Ownership

The Cost Of Inflation To Homeowners

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It’s great when the value of your house increases. For most people, their house is a major investment that increases in value and that they can pass on to their children. Homeowners make up 65 percent of American households. However, there is a down side to increasing property values. Cities and towns (in most cases) reevaluate the value of houses, and as your house increases in value, your real estate taxes go up. Sometimes the taxes go up to the point where you can no longer afford to live in the house you own. Some Americans are starting to get upset about that.

On Sunday, Betsy McCaughey posted an article at Hot Air about the property tax revolt that is beginning. This issue is up for discussion at the North Carolina legislature.

The article reports:

Across the nation, these homeowners are angry and ready to fight against soaring property taxes. Their homes have appreciated, but they don’t have more cash in their pockets to pay the rising taxes that come with rising home values.

A property tax revolt, with silver-haired payers leading the charge, is likely to shape the political map for November 2026.

Steve Moore, cofounder of the Committee to Unleash Prosperity, predicts fierce battles in state capitols, where teachers unions and other special interests will try to stop the tax relief movement, scaremongering about damaging cuts to school budgets and potholes in the streets.

These interests favor any state law that forces towns to reassess homes periodically because it leads to more local revenue. More money taken out of homeowners’ pockets to fill public workers’ paychecks.

The fights are already happening, and evidence so far shows that property tax relief is a winner. It’s dominating in Texas and Florida, underway in Wyoming and Wisconsin, and there is even some hope that it will catch fire in tax-hell New York state and neighboring, tax-beleaguered Connecticut.

In the blue city of Austin, Texas, 63% of voters rejected a proposal last month put forward by the Democratic mayor and city council to increases property taxes. Texas Gov. Greg Abbott is pushing a 3% annual statewide cap on how fast a home’s assessment rises. He’s styling himself as the protector of homeownership. Smart politics.

Florida Gov. Ron DeSantis is making property tax reform his issue too, even floating eliminating property taxes entirely and replacing them with sales taxes, a state fund to help the poorest counties and — imagine this — frugality.

The article concludes:

With outrage rising, all that could change. Homeownership is the American dream. Property taxes threaten it. Voters of all persuasions are feeling the pain, setting in motion a demand for tax fairness that could make 2026 an upset election season.

Stay tuned.

Another Reason To Love Senator Kennedy From Louisiana

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On December 20th, Spreely News posted an article about some recent comments by Senator John Kennedy from Louisiana. As usual, Senator Kennedy summed up the situation with truth and humor.

The article reports:

Senator John Kennedy (R-La.) delivered a fiery performance during a recent Senate hearing, targeting what he called “climate alarmism” and exposing alleged inconsistencies in the arguments of Dr. Benjamin Keys, a Professor of Real Estate and Finance at the Wharton School. The contentious exchange revolved around climate change, homeownership, and the divide between public policy and personal actions.

The Louisiana senator began his questioning by referencing an essay Dr. Keys had written for The New York Times titled “Climate Change Should Make You Rethink Homeownership.” Kennedy asked directly, “Did you write that?” Dr. Keys confirmed he was the author.

Kennedy quickly pivoted to a pointed question: “Do you own a home?” Keys admitted that he did, revealing that his property was located in a flood-prone area.

The senator followed up, “Have you sold it?” When Keys said he had not, Kennedy delivered a sharp retort: “Oh, well, you’re telling everybody else to sell theirs.”

The article also notes:

Kennedy’s questioning didn’t stop with Keys’ real estate choices. The senator also brought up a July 2024 tweet attributed to Dr. Keys. The tweet read: “Honestly, the biggest long-term political problem the Democrats have is that they don’t know how to talk to low-information morons.”

When asked if he authored the tweet, Dr. Keys denied it but acknowledged that he might have liked or retweeted it. Kennedy seized on this, pressing, “Oh, do you often like tweets you don’t agree with?”

The exchange put Keys in an uncomfortable position, as Kennedy sought to portray him as out of touch with average Americans. By invoking the alleged tweet, Kennedy highlighted a cultural divide between policymakers and the public, suggesting that some elites hold dismissive views of those they seek to influence.

…Such cultural divides are not unique to climate policy debates but are emblematic of broader tensions between experts and the public. Kennedy’s line of questioning sought to highlight these divides while calling into question the credibility of those pushing climate alarmism.

Known for his sharp wit and plain-spoken manner, Kennedy delivered several memorable lines during the hearing. When Dr. Keys tried to defend his position, Kennedy quipped, “You can’t make this cat walk backwards, Professor.”

We need more Senator Kennedys in Congress!

Neglecting Our Own. Why?

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On Friday, The U.K. Daily Mail posted an article about a taxpayer-funded scheme that grants benefits to illegal aliens but not to American citizens.

The article reports:

Oregonians have reacted angrily to a taxpayer-funded scheme that doles out $30,000 for non-legal migrants to buy homes, but excludes US citizens.

Hacienda Community Development Corporation, a Latino-led group in Portland, says in a promotion that it will give first-time home buyers up to $30,000 to get on the property ladder.

The scheme is ‘only for people who are not American citizens.’

It is instead open to refugees, asylum seekers, Green Card holders, and those who arrived in the US illegally as children, the post says.

It should be noted that Oregon has a Democratic trifecta and a Democratic triplex. The Democratic Party controls the offices of governor, secretary of state, attorney general, and both chambers of the state legislature. So the Democrats have seen the value of home ownership. It’s a shame that they are not willing to share that value with American citizens. At the same time the Democrats in Oregon are offering money to illegal aliens, their party on the national level is discussing a tax on ‘unrealized capital gains’ which if applied to homes would force most Americans to sell their homes. Since home ownership is one source of generational wealth, the contrast between how the illegal aliens are being treated and the potential for taxing Americans into poverty is interesting.

The article concludes:

Since October 2021, over 10 million migrants have crossed into the US, according to federal statistics — straining the federal agencies that handle migrants and bringing border communities, like El Paso, Texas, to its knees.

Since January, the Mexican government has stepped up efforts to stop mostly South and Central American migrants traveling through its country on their way to the US.

Pressured by the Biden Administration, Mexican officials have set up checkpoints to find migrants on northbound buses and trains and return them to the Mexico-Guatemala international boundary.

In June, the White House announced changes how migrants could seek asylum at the border.

Any migrant who did not legally enter the US would be removed and not allowed to seek asylum.

It’s an election year. Expect to see at least cosmetic changes to the current border policy.

What Does This Mean For America’s Future?

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The Washington Examiner reported today that the rate of homeownership in America has declined steadily since 2006.

The article includes the following graph:

HomeownershipThe article explains:

The only age group that saw a rising homeownership rate over the past year was 35-44-year-olds, with younger and older people turning more to renting.

So let’s take a look at this from a broader perspective. Part of the decline is due to the housing bubble. However, we need to look at the impact of homeownership on our society and how the decline in homeownership will impact us in the future.

Homeowners are invested in their houses and in their neighborhoods. Generally speaking they take pride in both and will endeavor to keep both their homes and neighborhoods clean and crime-free. Under most circumstances, a home will increase in value, providing a basic investment for people who may not be able to invest in other assets. The increase in renters means an increase in landlords, people who own the rental property. It seems to me that the increase in landlords and renters is an indication that the middle class is being squeezed out economically. I understand that in many parts of the country housing is extremely expensive, but there are also areas of the country where jobs are available and housing is reasonably priced. I fear that the decrease in homeownership represents a moving away from the idea of owning something, taking care of something, and having an asset in the future. It may be a reflection of our instant gratification society rather than an economic indicator. It also may be a reflection of the American culture versus the culture of the large number of immigrants currently coming to America from different countries. Private property rights are one of the backbones of our freedoms–other countries may not have those rights. In order to keep our middle class strong economically and help keep our neighborhoods crime-free, we need to encourage all Americans, whether they were born here or just arrived from another country, to own homes and take care of them.

A Picture Is Worth A Thousand Words

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Zero Hedge has posted nine charts that clearly show what President Obama’s economic policies have done to the American economy and those of us who try to exist in it.

Here are the charts:

EconomicCharts2015

If you follow the link above to the site, you can make the charts larger. It really is not a pretty picture.