It is believed and proffered that in America, the land of opportunities, those willing to work hard will realize their dreams of a prosperous tomorrow. However, with the current state of the economy, it is prudent to ask if some components of the American Dream are becoming unattainable for many Americans.
Many Americans look forward to buying a home as a milestone in their lives. The sense of accomplishment, security, and stability contribute significantly to one’s emotional well-being and foster a deeper sense of community.
A recent Newsmax/TIPP Poll found that for three-quarters, 74%, of the people who took part in the survey, owning a home is part of their American Dream. Age and other criteria seem to have little sway over the desire to have a place called one’s own.
While the dream and desire may be widely prevalent, the reality is that of the 1401 survey respondents nationwide, only 58% own a home. Almost a third, 31%, live in rented accommodations, and another 12% currently live with family or have a roommate.
Buying a home is a big decision and one that is influenced by many factors. While there were many reasons for the significant percentage not owning a house, a clear majority, 57%, said they could not afford a home despite their wish to do so. Current life situations like military service, divorce, etc., kept another 15% from owning a residence. A tenth found renting to be more suitable to their life right now. Another tenth, or 9% to be exact, simply did not want the responsibility of owning a house.
A closer look at those already possessing a dwelling reveals that while 78% of seniors are homeowners, only 60% of the 45-64 age group own a home. The figure drops to 54% among the 25-44 year olds. The data points to the economy’s trajectory over the past few decades. In the past, Americans bought starter homes at reasonable mortgage rates and moved to permanent homes when their financial status improved.
But, today’s market is not conducive to such initiatives. Prohibitive interest rates and high asking prices turn away those looking to buy a home. According to the National Association of Realtors index, in 2023, home-buying affordability fell to the lowest level since 1985.
With raging inflation and the Feds keeping interest rates high to rein in prices, mortgage rates have also skyrocketed. It is estimated that a media household must set aside more than 40% of its income to cover payments on a median-priced home. With wages barely and rarely keeping up with inflationary pressures, it is unsurprising that many cannot meet the down payment mandates stipulated by lending institutions.
High prices deterred 17%, and 8% were discouraged by the high-interest rates, while a majority, 59%, stated that the combined effect of high home prices and high-interest rates prevented them from purchasing a residence.
About two-thirds of those in the lowest income bracket (less than $30K) and more than half (57%) of those in the $30K-$50K income segments simply “cannot afford a home.” These numbers paint a sad picture, as many low-income families may never enjoy the stability and security of owning a home.
Three-fourths of non-homeowners in the survey said it would be difficult to qualify for a mortgage.
Further, the data shows qualifying for mortgages is more challenging for lower-income Americans.
The pre-pandemic setting, characterized by low-interest rates and a strong economy, encouraged Americans to buy homes and invest in property. However, now that the Feds have eased up on buying bonds backed by home mortgages, mortgage rates will likely remain high. Thanks to the short supply of available homes, prices will unlikely come down soon.
The grim scenario is widening the wealth gap in American society. The American residential real estate market was estimated to be worth around $2.53 trillion in 2023. Analysts opine that the sector will reach $2.80 trillion by 2028. While many may see this as a sign of a healthy economy, the sad reality is that Americans are struggling to attain their dream of owning a home.
TIPP Takes
Geopolitics, Geoeconomics, And More
1. Antony Blinken Calls For Cease-Fire, Says Hamas ‘Only Thing’ Standing In The Way – UPI
Secretary of State Antony Blinken, who was meeting with Middle East regional leaders in Saudi Arabia, said a cease-fire was the best way to start relieving suffering in Gaza and move toward healing.
In calling for a cease-fire, Blinken added that Hamas has a deal on the table from Israel that he called “extraordinarily generous” and that their agreement is the last piece needed to reach a cease-fire agreement.
“In this moment, the only thing standing in the way of the people of Gaza and a cease-fire is Hamas. They have to decide and have to decide quickly.”
2. U.S. Says It ‘Does Not Support’ ICC Investigation Of Israel – AFP
The United States said it opposed the International Criminal Court’s (ICC) investigation into Israel’s conduct in Gaza amid reports that Israeli officials fear the Hague-based tribunal could soon issue arrest warrants.
Israeli Prime Minister Benjamin Netanyahu reportedly raised the issue with U.S. President Joe Biden during a weekend call.
The New York Times quoted Israeli officials as saying that Netanyahu himself could be among those charged. The court was also weighing charges against leaders of Hamas, it said.
3. NATO’s Jen Stoltenberg Makes Surprise Visit To Kyiv – UPI
NATO Secretary-General Jens Stoltenberg told Ukrainian President Volodymyr Zelensky in a surprise visit to Kyiv that help was on the way after a winter that saw Russia make incremental advances in its invasion of its neighbor.
Stoltenberg, acknowledging delays by the United States and other allies in getting additional aid to Ukraine, said the country fought valiantly in limiting successes by Moscow and will now have a chance to turn their fortunes around.
4. UN Monitors Say North Korean Missile Struck Ukraine’s Kharkiv – Reuters
The debris from a missile that landed in the Ukrainian city of Kharkiv on January 2 was from a North Korean Hwasong-11 series ballistic missile, United Nations sanctions monitors told a Security Council (UNSC) committee in a report.
The UN sanctions monitors concluded that the debris recovered “derives from a DPRK Hwasong-11 series missile” and is in violation of the arms embargo on North Korea.
The U.S. and others have accused North Korea of transferring weapons to Russia for use against Ukraine. Moscow and Pyongyang have denied the accusations.
5. China Views European Spying Allegations As A ‘Serious Problem’ – RFA
China’s responses to allegations of spying in Germany and the United Kingdom suggest that the ruling Communist Party has plenty to lose from closer public scrutiny of its overseas influence operations, analysts say.
The arrests highlighted concerns over Beijing’s attempts to infiltrate democracies and extend its political influence far beyond its borders. A spokesperson for the Chinese Embassy in London said the claims of spying for China were “completely fabricated and nothing but malicious slander.”
6. Philippines And China In New Confrontation At Scarborough Shoal – Al Jazeera
The Philippines has accused China of “dangerous maneuvers and obstruction” and reinstalling a barrier at the disputed Scarborough Shoal, which Beijing blockaded and seized from Manila in 2012.
Philippine Coast Guard (PCG) said two Philippine vessels on maritime patrol encountered four China Coast Guard (CCG) ships and six vessels from its maritime militia in the area on Monday morning.
The Philippine ships were struck by water cannons from the CCG ships in the vicinity of the shoal, which the Philippines calls Bajo de Masinloc.
7. Tensions Grow As China Ramps Up Global Mining For Green Tech – BBC
The BBC calculates that based on their shareholdings, Chinese companies now control an estimated 33% of the lithium at projects currently producing the mineral or those under construction.
At least 62 mining projects worldwide have Chinese companies’ stakes, and they are designed to extract either lithium or one of three other minerals key to green technologies: cobalt, nickel, or manganese.
However, as Chinese businesses expanded, they faced allegations of abuses like those often leveled at other international mining giants.
8. Gold Prices: A Barometer Of Geopolitical Instability And Economic Fears – Al Arabiya
Despite the recent dip, gold prices have surged by over 13 percent since the beginning of the year.
The recent dips have sparked a debate among investors and analysts about whether the losses are part of a corrective wave following record highs or simply routine profit-taking that could reflect deeper economic and political dynamics.
Fears of a global recession are intensifying, supporting higher gold prices. Data shows an 85 percent likelihood of a recession in America in 2024, the highest probability since the Great Financial Crisis in 2008.
9. An Assassination Plot On American Soil Reveals A Darker Side Of Modi’s India – The Washington Post
In reports that have been closely held within the American government, U.S. intelligence agencies have assessed that the operation targeting Sikh activist Gurpatwant Singh Pannun was approved by India’s spy agency, the Research and Analysis Wing (RAW), chief at the time.
That India would pursue lethal operations in North America has stunned Western security officials. In some ways, however, it reflects a profound shift in geopolitics. After years of being treated as a second-tier player, India sees itself as a rising force in a new era of global competition, one that even the United States cannot afford to alienate.
10. Burkina Faso Bans More Foreign Media Over Human Rights Watch Massacre Report – BBC
Burkina Faso has suspended yet more foreign media outlets over their coverage of a report by the U.S.-based Human Rights Watch (HRW) that accused its army of killing 223 civilians.
The West African nation’s military government has denied the allegation. They have already suspended the BBC and U.S. broadcaster Voice of America for reporting on the HRW’s publication.
11. IMF Promises Pakistan ‘Immediate’ Release Of $1.1bn Loan After Key Meet – Al Jazeera
The “immediate disbursement” of the $1.1bn tranche completes a total loan of $3bn agreed to under a deal inked last year. Economists have warned that the country needs deep reforms to reduce its dependence on overseas financial assistance.
Pakistan has been reeling from a severe economic crisis for more than two years. At one point, its inflation shot up to nearly 38 percent, and its foreign currency reserves depleted to $3bn in February 2023, enough to cover less than five weeks of imports.
12. Futuristic $10 Billion City In Japan Built For A “Mass Human Experiment” – NDTV
Travel & Leisure reported that the Woven City—a multi-billion dollar city project for 2,000 people—was first announced in 2021, and Toyoto has been constructing it ever since.
Sustainability is a core principle for Woven City. The city aims to minimize emissions by utilizing hydrogen-based technology. Smart homes equipped with specialized sensors will also foster seamless communication between residents, buildings, and vehicles, creating a truly interconnected environment. Woven City’s streets will be a testbed for the future of transportation with Toyota’s self-driving E-Palette vehicles navigating dedicated lanes.
13. Plant-Based Diet May Reduce Risk Of Emphysema Among Smokers – HealthDay News
Current and former smokers might lower their risk for emphysema if they adopt a highly nutritional plant-based diet, a new study shows.
People with a history of smoking who adopted a plant-based diet had a 56% lower risk of developing emphysema compared to those who ate more meat, researchers report.
Emphysema, a type of COPD, occurs due to irreversible damage to the air sacs in the lungs. This damage limits the amount of oxygen that these sacs can transfer to the bloodstream, leaving people feeling constantly short of breath.
Republished with permission from TIPP Insights
