Submit Review: The Housing Crisis: Why Homes Are Becoming Unaffordable for the Average Person

Is Homeownership Becoming a Fantasy?

For generations, owning a home was seen as a fundamental part of the American Dream—a symbol of stability, success, and financial security. But today, the housing market is a nightmare for millions of people. Prices are skyrocketing, wages remain stagnant, and investors are buying up homes at an unprecedented rate, leaving everyday people struggling to afford even a modest place to live.

The question is: Who is responsible for the housing crisis, and why is it getting worse?

This article exposes the hidden forces behind rising home prices, corporate greed, government failures, and real estate manipulation. If you're wondering why you can’t afford a home in 2025, you’re not alone—and the truth might shock you.

The Rising Cost of Homes: What’s Really Happening?

1. The Average Home Price Has Exploded

In the 1950s, a home in the U.S. cost around $7,400—about $79,000 in today’s money. Fast forward to 2024, and the median home price is over $400,000.

Why is this happening?

Corporate landlords and investment firms are buying up residential properties—often outbidding individual buyers.
Construction costs have skyrocketed due to supply chain issues and inflation.
Mortgage rates are higher than ever, making it harder for first-time buyers to qualify for loans.
Government policies favor investors over working-class buyers, creating an uneven playing field.

So, is homeownership still a realistic goal for the average person, or has the system been rigged against regular buyers?

Who’s to Blame for the Housing Crisis?

1. Corporate Landlords Are Buying Up Neighborhoods

Wall Street has entered the housing market— and it's bad news for everyone except investors.

Investment firms like BlackRock, Vanguard, and other real estate giants are buying up single-family homes and turning them into rentals.

How does this hurt regular homebuyers?

Investors outbid first-time buyers with all-cash offers, driving up prices.
They turn homes into rentals, creating a shortage of houses for sale.
They raise rents, making it harder for people to save for a down payment.

This means corporate greed is directly making homes unaffordable—and most people don’t even realize it.

2. The Airbnb & Short-Term Rental Problem

Once upon a time, Airbnb was a great way for homeowners to make extra cash. Today, it’s a major reason why housing prices are out of control.

Investors buy entire neighborhoods just to turn homes into short-term rentals.
Cities have fewer available homes for regular families.
Rent prices rise because landlords see short-term rentals as more profitable.

In cities like New York, Los Angeles, and Austin, local governments have tried to limit short-term rentals—but big money always finds loopholes.

3. Wages Haven’t Kept Up with Housing Prices

Here’s a brutal truth: Your parents' and grandparents' generation had it easier.

In 1980, the average home cost $47,200, while the median income was $19,500.
In 2024, the average home costs $400,000, but the median income is only $74,000.

If wages had kept up with housing prices, the average salary today should be over $150,000—but it's not.

This means that, mathematically, homeownership is further out of reach than ever before.

Why Aren’t We Building More Homes?

With so many people struggling to buy a home, you’d think the solution would be to build more houses—but that’s not happening. Why?

1. Zoning Laws Are Outdated and Favor the Rich

Most cities have laws that make it illegal to build affordable housing in many areas.

Single-family zoning laws prevent apartments or multi-unit housing in many cities.
Wealthy neighborhoods fight against affordable housing projects to "protect property values."
Construction permits and regulations make building new homes slow and expensive.

2. Construction Costs Are Out of Control

Inflation and supply chain disruptions have made building homes way more expensive.

The cost of lumber, steel, and concrete has surged.
Labor shortages mean there aren’t enough workers to build houses.
Land prices are higher than ever, making new developments unaffordable.

Developers focus on luxury homes and expensive apartments—because that’s where the profit is. Meanwhile, affordable housing gets ignored.

How the Government is Failing to Fix the Housing Crisis

The government claims it wants to help people afford homes, but many policies actually make things worse.

1. Federal Reserve Policies Are Killing First-Time Buyers

The Federal Reserve raised interest rates to fight inflation, making mortgage payments higher.
Instead of helping homebuyers, these policies favor banks and corporate investors.
Meanwhile, the government bailed out big banks in 2008 but never helped struggling homeowners.

2. Tax Breaks for the Wealthy, Nothing for Regular People

Did you know the U.S. tax code rewards investors for hoarding real estate?

The 1031 Exchange Loophole allows investors to sell homes tax-free if they reinvest in more real estate.
Mortgage interest tax deductions favor the wealthy over first-time buyers.
Big landlords get huge tax breaks, while renters and young buyers get almost nothing.

Instead of helping regular people afford homes, government policies reward those who already own multiple properties.

Can Anything Be Done?

Many experts believe we are heading toward a housing crash or a permanent generation of renters who will never afford homes. But are there solutions?

1. Ban Corporate Ownership of Single-Family Homes

Some cities are trying to stop investment firms from buying up homes. If successful, this could:

Reduce home prices.
Make homeownership easier for real families.
Stop big landlords from controlling the market.

2. Crack Down on Short-Term Rentals

Cities like New York have introduced strict Airbnb regulations. If more cities follow, this could:

Free up homes for regular buyers.
Lower rent prices in urban areas.
Reduce the number of corporate-owned properties.

3. Reform Zoning Laws

More cities should allow multi-unit housing and affordable home construction.

More duplexes and townhomes = More affordable options.
Fewer restrictions on apartment buildings = Lower rent prices.
Government investment in housing projects = More supply, lower prices.

4. Increase Wages and Address Income Inequality

Unless wages rise to match housing costs, homeownership will remain a dream for most. Possible solutions include:

Raising the minimum wage to a livable standard.
Implementing universal basic income (UBI).
Creating homebuyer assistance programs that actually work.

Final Thoughts: Is Homeownership a Lost Cause?

For millions of people, the idea of owning a home is slipping further out of reach. The real estate industry is dominated by corporate investors, greedy landlords, and government policies that favor the rich.

Unless major changes happen, we may be looking at a future where:

Homeownership becomes a privilege only for the wealthy.
Entire generations remain stuck renting for life.
More people leave expensive cities in search of affordable living.

The housing crisis isn’t an accident—it’s the result of greed, bad policies, and systemic failures. If you’re struggling to buy a home, you’re not alone, and it’s not your fault. The system is broken—and it’s time for change.