Are Greedy Developers helping to inflate the economy or is it the Government?

 

Are Greedy Developers helping to inflate the economy or is it the Government?

They say that it is best to have a balance between supply and demand in order to level the playing field of our economy. That’s the big line in the construction field, more homes and rentals, and the prices come down. Well, that might be true in some areas but when the economy is in the you know what, jobs are not as they used to be and the price of everything is so high that you can’t afford to feed yourself or your family, greedy developers should think twice before building new apartment buildings that will sit empty for months to come, along with commercial buildings doing the same. 

Having owned a construction company back in the 80s I know firsthand how the industry works in giving blue-collar employees good-paying jobs. Now with interest rates on the rise due to an incompetent government, the price of construction has gone up even more than usual. Loans for supplies and construction projects have risen to the point where jobs are going to be scarce within the industry because companies won’t be able to afford skilled labor.

When we look at the statistics of the industry in 2023, just this past June the building industry dropped by 8% from a surprising surge back in the early part of the year. Why such a drop well that’s because the industry inventory of supplies has dried up to the point that with new interest rates being so high for a new home, it’s going to be hard to buy a home in the coming years.

With high mortgage rates combined with high construction costs, we’re looking at a serious downturn in the home-buying arena. When we look at the permit data for new construction even those numbers are down by 15% from a year ago. So, what does all this mean? It means that to afford a new home, couples or even an individual must rely on a steady income of over $150,000 a year to cover the costs of a mortgage due to the higher rates straining any ability to affordability.

So, the question is, is it greedy developers causing the economy to inflate or is it the government’s fault that the economy sucks? It is the Government’s fault for sure because they run the Federal Reserve and allowed it to recently increase the interest rate increased last week to 6.93% from 6.87% from the previous week. In essence, if you want to buy a home and have a 30-year mortgage, you’ll have to pay through the nose to get it. Not only will you have to pay a real estate fee, but also an origination fee, and pray you can afford the monthly mortgage payment every month once you obtain the loan. That’s if you qualify for the loan. In the past year mortgage loans have gone down approximately 3% and are over 32% lower than last year.

As a result of such high prices for housing, rentals, and mortgage rates, homelessness in America is going to increase to a point where we will see situations as we had in this country during the Depression era. We’re already seeing an increase in tent cities popping up all over the country. Unfortunately, city elected officials not knowing what to do or how to handle these tent cities is causing more problems by arresting those who are down on their luck and having to live in those tents. Is the government doing anything to help, nope. In fact, Congresswoman Nancy Pelosi has said over and over again that we must “change the subject because inflation is a global phenomenon. Hey Congresswoman Pelosi not sure if you’ve seen the figures or not, but we’re at a 40-year high on inflation, crime is at an all-time high, gas prices are at a high, food prices are high and you’re allowing 2.3 million illegals to enter the southern border without any real plan of action to help house, feed and sustain them in this country while your fellow Americans are suffering. You and the Democrats in elected office want to change the narrative so that the American people don’t see that you’ve failed in your jobs to protect this country and its citizens. It’s time for you and your ilk to resign and make room for new blood to guide this country out of debt and a better economy. You’re making things worse and allowing Americans who are suffering to live in tent cities. Yup, we’re right back in the depression era once again and no one is doing a damn thing to solve the issues. If we can pay for housing for illegals, we should be able to help house our homeless citizens and afford them a little dignity to help them get on their feet once again.

 

Elizabeth Kilbride is a former political operative, author, scriptwriter, historian, and journalist. business professional, creative artist, and life coach consultant. Ms. Kilbride holds a Master's in Criminology and a BS in Business Management she stepped out of the loop for a while but is now back with a powerful opinion and voice in the direction of this country and our economy. As a life coach, she is available to counsel individuals to enjoy their dreams and a better life. Ms. Kilbride loves to travel, and photograph her surroundings and is also a gourmet cook who loves to garden and preserve food for the winter months.